Listing debt securities

What are the reasons for listing debt securities?

Issuers list debt securities primarily to:

1. •

   access a broader investor base

2. •

   increase liquidity and marketability

3. •

   increase transparency, and

4. •

   benefit from tax efficiencies, notably the quoted eurobond exemption from UK withholding tax

A key reason issuers choose to list debt securities on a stock exchange is to gain access to a wide group of investors, and to increase their marketability.

The target investors for most types of debt securities are institutional or professional investors. Many of these investors have investment criteria limiting their ability to invest in unlisted securities. Listed securities therefore potentially enjoy a greater level of liquidity than they would have if they were not listed.

The listing process also involves additional information disclosure, which can provide greater transparency and potentially increase investor confidence.

Stock exchanges are effectively competitive service organisations, seeking to differentiate themselves by offering more professional and more streamlined services. For information on the role of stock exchanges