Issuing process
The issue process in Ramses-system varies depending on the instrument in question. Bonds need a permit for each issue. Zero-coupon instruments can be issued by so-called continuous issuing permit or issued individually per application.If the corporation or community has not previously acted as an issuer in Ramses-system, it needs to apply for an issuer permit. Issuer and issuing permits can be applied simultaneously. Issuing may begin immediately after the issuer has signed the issuer contract. It is recommended that the issuer reserve approximately two weeks for the application process.
Issuer application
All new issuers in the Ramses-system are approved by the Managing Director of Euroclear Finland Ltd according to an application. An agreement is made in writing with a new issuer to cover handling of securities, opening accounts and following the rules and regulations of Euroclear Finland.
Bonds
As the corporation or community has made the decision of issuing new debt instrument, a lead manager will be chosen (there can be more than one). Lead manager's responsibilities may include formulating the terms of the issue, writing the prospectus as well as in marketing the issue to investors. The issuer must also choose an issuing agent, which is a clearing party (and account operator) in Ramses-system. Issuing agent takes care of the practical functions of the issue, which can be related to delivery of the application documents and terms of issue to the Euroclear Finland, entering information on the issue and primary market transactions into system and managing dividend payments.
Zero-coupon instruments
For the issues of zero-coupon instruments, the permit issuers normally apply for is a continuous. This way the issuer can issue new instruments or increase the issued amount of existing instruments without separate application. When issuing zero-coupon instruments, there is no obligation to announce prospectus like issuing bonds to the public.
Due to DvP -principle, registrations related to the issues are made in real-time. Issuer will have the funds in its possession the moment issue settles and the book-entries are final on the book-entry accounts. This DvP-principle also increases liquidity. Issuing in Ramses-system is also affordable; for bonds the price is 0.0004% of and for zero-coupon instruments 2,5 + 0.0033% of yearly nominal value.
Coupons are also paid in Ramses-system. Issuer will receive protection of payment after paying the instalment, coupon, or the amount of redemption to Euroclear Finland. Money is transferred automatically to the investors' account operators who them deliver the payment to the investors' bank accounts.
