Form of debt securities—global securities
Form of debt securities—global securities

The following Banking & Finance guidance note provides comprehensive and up to date legal information covering:

  • Form of debt securities—global securities
  • Global securities v definitive securities
  • Global securities—key features
  • Global securities in bearer form
  • Global securities in registered form
  • Temporary global security versus permanent global security
  • Global securities—the problem for investors
  • Global note structures
  • A quick recap on terminology—bonds versus notes
  • Summary of the different forms of debt securities

BREXIT: The UK is leaving the EU on Exit Day (as defined in the European Union (Withdrawal) Act 2018). This has an impact on this Practice Note. For guidance, see Practice Note: Brexit—impact on finance transactions—Brexit planning and impact—key issues for debt capital markets transactions and Brexit—impact on finance transactions—Derivatives and debt capital markets transactions—key SIs.

Debt securities, such as bonds, medium-term notes and commercial paper, are financial instruments which acknowledge a debt (see Practice Note: Types of debt securities). Issuing debt securities in the debt capital markets is a means of raising large-scale finance (see Practice Note: Introduction to the debt capital markets).

This Practice Note examines some of the different forms that debt securities can take and explains the meanings of, and differences between:

  1. a temporary global security versus a permanent global security, and

  2. a classic global note structure versus a new global note structure or new safekeeping structure

The focus of this Practice Note is on the features of global debt securities. It should be read in conjunction with Practice Note: Form of debt securities—definitive securities which explains:

  1. the features of definitive securities, and

  2. the differences between a bearer security and a registered security

Global securities v definitive securities

In theory, debt securities can be issued either in definitive form or in global form. In practice, all debt