Euronext extends private placement bond listings to Alternext

By Lisa Kerner

Charlotte, N.C., March 13 – Euronext announced the launch of Euronext Private Placement Bonds (EPPB), a pan-European initiative that rounds out Euronext’s existing private placement bond range by extending it to Alternext.

The initiative gives issuers of private placement bonds, which includes Euro-wide private placement bonds, high-yield bond issues, mutualized bonds or securitization vehicles, easier access to Euronext markets in France, Belgium and Portugal, according to a news release.

Euronext said EPPBs give small- and medium-sized enterprises and large companies, rated or non-rated, both listed and unlisted, a simple means of raising funds through bonds.

With EPPBs, businesses can now list private placement bond issues on Alternext in a cost-effective manner using a standardized procedure. Financial reporting and monitoring requirements do not include a prospectus or a listing sponsor, and there is no compulsory publication of annual or half-year results, according to the release.

Alternext rule changes

Alternext announced changes to its rule book that will facilitate the EPPB. The changes are effective March 16, according to Alternext.

The new Alternext Rule Book will be issued on March 13 and will be available on the Euronext website (https://www.euronext.com/regulation/alternext).

In support of the new EPPB offering, Alternext rule changes include

• Exemptions to appoint and have a listing sponsor for private placements of debt securities;

• Enhancement of the rules applicable to issuers of equity securities versus issuers of debt securities; and

• Introduction of certain specific items to the Alternext Markets that are currently already applicable to Euronext’s regulated markets.

“We are confident that our EPPB offer will make Euronext the market of choice for listing private placement bonds in Europe, and will boost our competitive edge in the primary bond market,” said Marc Lefevre, head of business development and client coverage for Euronext.

“Designed to meet our clients’ needs in a timely and efficient way, EPPBs are a natural stage in the disintermediation of finance. They will give European companies – particularly SMEs – easier access to capital markets.”

Euronext is the first pan-European exchange, spanning Belgium, France, the Netherlands, Portugal and the United Kingdom.

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