Incorporating debt instruments into the book-entry securities system
Debt instruments offered to the public can also be entered in the OM system where they will appear in the same book-entry account as shares. Yield payments andredemptions on maturity are processed through the Euroclear Finland 's services.
Issuer Application
Before issuing the issuer or an issuer agent sends an issuer application for the non-equity rated and other corresponding book-entries in the OM-system to Euroclear Finland.
Appendices to be attached to the issuer application:
- Basic data about the issuer
- Extract from the Trade Register
- Articles of association
- Annual report
- Legal opinion, decision by the board of directors or similar to apply to become an issuer
- Power of attorney to the issuer agent in case the issuer is using an issuer agent to make the application
- Issuer agreement
The Chief Executive Officer of the Euroclear Finland approves the application and signs the agreement between the Euroclear Finland and the issuer.
Application for issuing debt instruments
Each new issue requires a separate application for issuing debt instruments. An issuer appoints an issuer agent to carry out the issue. An issuer agent shall agree on the terms and conditions of the issue with Euroclear Finland and deliver the application with appendices to Euroclear Finland not later than five registration days prior to the intended issue date.
Appendices to be attached to the application for issuing:
- Basic data on debt instruments
- Final terms
- Base prospectus
- Extract from the Trade Register
- Articles of association
- Decision by the board of directors or similar to issue debt instruments
- Power of attorney to the issuer agent
Subscriptions
Subscriptions may be accepted by various subscription places, which submit information on the subscribed bonds electronically to Euroclear Finland. Euroclear Finland enters the data in the subscribers book-entry accounts.
Costs
Euroclear Finland charges for the entry of a retail bond into the book-entry securities system in accordance with its prevailing tariffs. With a total value of EUR 50 million of the debt instrument issue, the maturity over 12 months and the number of bondholders 2,100, the entry costs would be as follows:
Issuing fees:
Issuing fee of debt instrument 950 euros
Subscription transfer to book-entry securities system
1,000 + (2,100 x 0.85) euros = 2,785 euros
(data transferred through another system than a bank’s subscription system, e.g.
using EasyEdi service tailored by customer)
Total 3,735 euros
Annual costs:
Basic fee 12 x 465 euros = 5,580 euros
Maintenance of creditor register 12 x 267,83 euros = 3,213.96 euros
Yield payment 4,023.50 euros
Total 12,817.46 euros
In addition to the fee for action, a basic fee of 84.09 euros per account operator is payable in respect of yield payments or redemptions.
