Types of debt securities
Bonds and Eurobonds
Many investors can only buy bonds that are listed on a Recognised Investment Exchange, such as the London Stock Exchange. As Europe's largest and the world's most international stock market, it is the Exchange's role to provide efficient and well-regulated markets for both bond issuers and investors. We also help ensure the issuing process is as quick and efficient as possible, working closely with the UK Listing Authority (UKLA), bond issuers and their advisers.
There are several steps in the process of issuing a bond, which all issuers must follow. 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.
Different types of issuers that choose to list their bonds in London include:
- corporate issuers - companies from around the globe, including some of the UK and the world's most successful and best-known businesses, choose London to list their bonds.
- governments and their agencies - the UK Government is one of many national governments that list debt instruments on our market. There are also around 40 other sovereign issuers who have also chosen to list their debt securities in London.
- local authorities - state and regional governments across the UK and the world are among other public bodies that issue and list bonds in London.
- multilateral institutions - supranational bodies, such as the European Bank for Reconstruction and Development, also offer their debt instruments to an international audience through a London listing.
A program is an efficient and cost effective way of listing debt securities. Under an umbrella of one base prospectus, a number of notes can be drawn down within a short period of time and in a cost effective way.
Programs are placed between short and medium term debt and are most similar to revolving credit lines. As such they enable issuers to take advantage of market conditions that best favour their needs and current cash flow situation, and can be a convenient cash flow management tool as they allow quick access to funds.
Flexibility and portfolio diversification are also important reasons for listing programs. Investors can chose from a wide range of programs, differing in timing, industry and sector. Although originally conceived as a medium-term instrument, programs are becoming increasingly used in various maturity dates, offering even further diversification.
The UKLA usually lists Medium Term Note (MTN) Programs under its fast track regime, thus enabling first comments to be provided within four working days, with further comments available within two days.
A practical guide to listing debt in London (file pdf - 362 KB)
Admission and disclosure standards (file pdf - 544 KB)