Form of debt securities—global securities

The following Banking & Finance practice 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
  • Temporary global security
  • Permanent global security
  • Global securities—the problem for investors
  • Global note structures
  • More...

Form of debt securities—global securities

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 securities issued in the international capital markets are issued in global form.

One of the key differences between definitive securities and global securities is that:

  1. definitive debt securities are separate certificates representing each security that, together, represent the whole issue, whereas

  2. a global debt security is, generally, a single document representing the whole issue

Both definitive and global securities

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