The Advantages of Listing High Yield Bonds in the Channel Islands
Since the introduction of the European Union’s Market Abuse Regulation (Regulation 596/2014) (MAR), a number of issuers have sought to move their listings to the Channel Islands and new issuers have commenced listings here.
The International Stock Exchange
The first high yield bonds listed on The International Stock Exchange (TISE) in the Channel Islands, after the introduction of MAR, were listed in August 2016 which prompted significant interest from issuers and advisers, especially from the European Union, to either bring new issues to the Channel Islands or migrate currently listed securities from European Union exchanges. TISE figures show that 103 companies have issued and listed 156 high yield bonds on TISE between 3 July 2016 and 30 June 2018.
Institutional investor bodies have acknowledged that the consumer investor protections conferred by MAR (and the related compliance burden and cost) go beyond the needs of such investors and have accepted the approach of TISE as robust and proportionate.
Recognised Stock Exchange
TISE is a “recognised stock exchange” by Her Majesty’s Revenue and Customs pursuant to section 1005 of the United Kingdom Income Tax Act (2007), which means that the tax treatment of high yield bonds is positively enhanced by TISE’s status as a recognised stock exchange.
Interest paid on qualifying high yield bonds does not have to be withheld for UK tax purposes if the high yield bonds are listed on TISE.
Appleby as Listing Member
Appleby Securities (Channel Islands) Limited acts as a sponsor for listing purposes, is a full listing member of TISE and can provide high quality, cost-effective professional services in all aspects of structuring and documenting high yield issues.
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