Issuance process


There are several steps towards issuing a bond, which all issuers have to take. Admission to listing and admission to trading are parallel processes, in which the Exchange and the UK Listing Authority (UKLA) work together with issuers and their advisers (see the listing process).

The mandate

Appointing the lead manager (see the parties involved) and, advised by them, choosing the size, structure and timing of the bond issue.

 

Due diligence

Providing and verifying all the information required for the issuer's listing document and the supporting documentation. Legal advisers lead this work.

 

Preparation

Preparing the documents including the information memorandum and listing particulars and presenting them to the UKLA and the Exchange.

 

Launch

With the due diligence and marketing completed, this is the official announcement of the bond issue when the lead manager invites the syndicate (see the parties involved) to participate in placing the bonds with investors.

 

Signing and closing

The signing is when an issuer and their advisers sign and execute all the documents. Shortly after this and the closing, the issuer receive the proceeds of their bond issue.

 

Secondary market trading

With the bonds now listed on the London Stock Exchange they are eligible to be traded by investors, either on the open market or, in the case of Eurobonds, by private deals between institutional investors.

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