Streamlining Eurobond primary market issuance
Launch of electronic Global Notes (e-GNs) and introduction of electronic signatures on issuance documentation for securities issued in the ICSDs ("Eurobonds")
Clearstream and Euroclear have introduced electronic Global Notes (e-GNs) under the New Safekeeping Structure (NSS) to streamline the primary market issuance process for international debt securities deposited with the International Central Securities Depositories (ICSDs). In addition to e-GNs as a new type of Eurobonds, the use of electronic signatures on all issuance documentation for Eurobonds is now possible.
Key features
The issuer community now has the option to issue, sign, authenticate and hold Eurobonds electronically by choosing to issue e-GNs. E-GNs are electronic securities stored in an electronic vault, and all documents related to the issuance of e-GNs can be electronically signed using accepted forms of electronic signatures. In addition, the introduction of electronic signatures on issuance documentation for all other Eurobonds will increase the efficiency of international securities issuance.
New templates for issuance documentation have been created to facilitate the process. The e-GNs will be represented by a digital PDF copy of the Global Notes in electronic form and deposited in a designated electronic vault for safekeeping. They will coexist alongside physically safekept, wet ink signed Global Notes.
Electronic New Safekeeping Structure
Please refer to the joint announcement for the full scope of e-GN.
Benefits
- Streamlined handling of Global Notes and Terms and Conditions throughout the primary market issuance process and subsequently during the security lifecycle
- Paperless safekeeping of Global Notes and Terms and Conditions
- Reduced time to market for Eurobonds issuance
- Secure electronic safekeeping vault
The issuer community is strongly encouraged to move towards adopting the electronic issuance model.