Listing Asian backed issuers on The International Stock Exchange (TISE)
There is a growing trend for Asian backed issuers to list securities on The International Stock Exchange (TISE). Here, we provide an introduction to listing securities issued by Asian backed issuers on TISE and a summary of Appleby’s own listing agent services in the Channel Islands.
Appleby Securities (Channel Islands) Ltd (“Appleby“) and The International Stock Exchange (TISE) work together on a significant number of listings of securities on TISE.
Debt securities trend
The international nature of our practice is strengthened by the fact that there is a developing trend for Asian backed issuers to list debt securities on TISE.
The issuers are often incorporated in the British Virgin Islands, the Cayman Islands, or Hong Kong, although from a listing perspective there is no reason why the issuer cannot instead be a Jersey or Guernsey incorporated entity.
These issuances often include a Keepwell Provider and/or a Personal Guarantor. The securities typically feature an interest coupon of between 5% and 15% with a maturity of up to five years.
These types of issuers are attracted to TISE because it is a specialist global debt market with sensible rules, and it provides a responsive turnaround of applications at a competitive price.
Asia activity on TISE
Accordingly, we have seen the volume and number of USD high-yield bonds with tenors less than one year issued by Chinese companies touching a new monthly high in January 2021. In addition, Asian backed green/social/sustainable high yield USD-bond issuance volumes YTD are at an all-time high in 1Q21 QTD.
Whilst offering a “recognised stock exchange” by, amongst others, HMRC, TISE’s robust but proportionate listing rules, combined with TISE’s pragmatic and commercial approach to listings, often appeals to issuers from the United Kingdom, Europe, the United States and Asia.
Listing Sponsor Services
Appleby is a leading listing agent with TISE, which listed 831 securities during 2020 against the backdrop of the coronavirus (COVID-19) global pandemic. This is the second highest annual total of new listings since the inception of TISE and Appleby acted as listing agent on an increasing number of these listings, representing a 37% increase on 2019.
Appleby assists domestic and international entities looking for a primary or secondary listing on TISE. Our listings team is committed to delivering a highly professional and integrated service, coordinating the listing process, and supporting the issuer through their application. We also act as our client’s ongoing listing agent and assist them in meeting their continuing obligations as a listed issuer on TISE.
The International Stock Exchange
TISE is a regulated marketplace from within the European time zone but outside the European Union. TISE is a “Recognised Stock Exchange” by UK HM Revenue & Customs. Today there are more than 3,100 securities listed on TISE. The majority of listings on TISE are for debt securities (including High Yield Bonds and Quoted Eurobonds) but TISE can also list other types of securities, such as REITs, Green Bonds, SPACs, other investment vehicles and equity listings.
Do get in touch with your usual Appleby contact should you wish to discuss.
