Investec Bank has listed its £2bn Impala Bonds Programme on London Stock Exchange Group's International Securities Market (ISM). The South African bank becomes the first UK bank to issue a bond programme on ISM and the first structured products programme on the market.
Investec Bank has also drawn down its first notes under its Impala Bonds Programme. The four-year dated fund linked notes raised SEK 100,000,000 (£8.8m equivalent) and started trading on ISM's order book for fixed income securities segment on Friday 23 February 2018.
The programme supports the issuance of 'interest rates (Rate-Linked Notes); currencies (fx-linked notes); the credit of one or more entities -and, where applicable, their performance in respect of certain debt obligations (credit-linked notes); one or more shares and other securities (equity-linked notes); one or more indices, including indices managed by the issuer (index-linked notes); inflation rates (inflation-linked notes); and one or more commodities (commodity-linked notes).'
The LSE ISM has been designed to meet the demands of issuers and investors and to enrich the funding environment for global debt issuance in London and has supported issuers in raising in excess of $5.3bn equivalent across a variety of international geographies, currencies and asset classes, including convertibles, Masala bonds, Komodo bonds and green bonds, since its launch.
'The ISM listing enables Investec to service a broader range of professional clients seeking the listing of bespoke deals, and is thus a great addition to the Investec product offering in Europe,' said Neil Raja, head of structuring, Financial Products, Investec Bank.
The listing of Investec Bank plc's Impala Bonds Programme on ISM and the draw-down of its first notes is a significant milestone for the market, according to Darko Hajdukovic, head of fixed income, funds & analytics, UK Primary Markets, London Stock Exchange Group.
'It highlights the choice available through London Stock Exchange for a variety of UK and international fixed income issuers seeking efficient access to London's uniquely deep pool of international capital, whilst reinforcing the City's standing as a global finance centre and a dynamic place to do business,' said Hajdukovic.
As a listing venue for structured products, the LSE admitted 650 structured products for trading in 2017 raising over US$7bn equivalent, up from 363 structured products which raised US$3.9bn equivalent in 2016.
The bank's structured investment business has increased its activity in the UK retail structured products market recently. Investec Structured Products teamed up with Lowes Financial Management earlier in January to launch a new product to the UK retail structured products market, the Investec/Lowes 8:8 Plan 1; and entered into a new partnership with Societe Generale Investec Structured Products in the UK at the end of 2017 aimed at the joint distribution of the French bank's collateralised structured products to retail market via financial advisors, with Investec acting as plan manager and co-distributor.
Investec is the most active issuer and distributor of structured products in the UK retail market. In 2017, the South African bank marketed over 150 retail products with over £600m in sales and a 32% market share. Year to date, Investec has issued 22 structured products targeted at financial advisers.
Click in the link to access Investec's Impala Structured Notes programme.
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