Listing Securitization Vehicles on The International Stock Exchange
An overview to listing loan note securities issued by securitization vehicles on The International Stock Exchange (TISE) and a summary of Appleby listing agent services in the Channel Islands.
Appleby Securities (Channel Islands) Ltd (Appleby) and TISE work together on a significant number of listings of securities on TISE.
TISE has listed several loan notes issued by securitization vehicles incorporated in Ireland, Luxembourg and England and Wales. Recently, we have seen a number of synthetic securitizations, where pools of revenue-generating assets are transferred to a newly incorporated special purpose vehicle (“SPV“).
The SPV then pays for the revenue-generating assets by issuing loan notes that are listed on TISE, and are often characterised as “Portfolio Credit Linked Notes”. Those loan notes are frequently secured over the assets of the SPV and/or the receivables generated by the assets. Those receivables are then applied towards the principal repayments and the interest coupon payments on the listed loan notes.
Recent TISE listings have included the following types of assets held by securitization vehicle SPVs:
- credit card debt obligations;
- vehicles loans;
- commercial mortgages;
- residential mortgages; and
- other unsecured consumer loans
Whilst offering a “Recognised Stock Exchange” for the purposes of UK HM Revenue & Customs 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.
