In today’s global capital markets, issuers of debt are constantly seeking ways to enhance investor confidence, broaden their reach, and optimise financing of structures.
One increasingly popular strategy is listing debt securities on The International Stock Exchange (TISE) based in Guernsey. But why is this option so attractive? Here are the key benefits that make TISE a compelling choice for issuers.
Access to the Quoted Eurobond Exemption
One of the most significant advantages of listing debt securities on TISE is eligibility for the Quoted Eurobond Exemption under UK tax regulations. This exemption allows issuers to make interest payments on listed debt without deducting UK withholding tax, provided certain conditions are met. For issuers with qualified non-UK investors or where interest payable is deemed to be UK-sourced, this can deliver substantial tax efficiency and cost savings. TISE’s status as an HMRC recognised stock exchange makes it the ideal platform for achieving that goal.
Is a TISE Listing Right For You Or Your Clients?
A wide range of issuers choose to list on TISE, from globally recognised companies and investment managers involved in major cross-border transactions to smaller private issuers with family or privately held investments in the UK.
Regardless of the size or complexity of the transaction, every issuer must appoint a listing agent, such as Trident Trust, to manage the application and remain in place for the life of the listing. This means issuers do not need in-house expertise or prior experience listing on TISE as we can do that for them
Converting existing loans into listed debt securities can also be a practical and cost-effective option. While Trident Trust does not provide legal advice, we work seamlessly with an issuer’s legal team or can introduce trusted legal counsel to ensure all documentation and advice is in place.
Investor Considerations
Bonds and other debt securities listed on The International Stock Exchange are admitted through its Qualified Investor Bond Market (QIBM). The QIBM is designed for professional markets and is limited to issuers whose investors are “institutional investors, professional investors, and other investors experienced and knowledgeable in investing in bonds.” This approach ensures that listings are tailored to sophisticated participants, providing a streamlined process and regulatory recognition while maintaining investor protection.
What Types of Transactions Could Require a TISE Listing?
Transactions listed by Issuers on TISE are wide ranging and include leveraged buyouts and acquisition financings where high-yield bonds are issued, corporate refinancings and recapitalisations using Eurobonds or structured notes, and private equity transactions where convertible instruments can provide flexible funding.
Infrastructure and project finance deals often utilise green or sustainability bonds to attract ESG-focused capital, while real estate financing transactions may involve listing loan notes to fund property acquisitions, development projects, or portfolio refinancing.
Additionally, securitisation and structured finance transactions may involve listing collateralised loan obligations or asset-backed securities to enhance marketability and regulatory recognition.
Access to a Global Investor Base
Institutional investors frequently require securities to be listed on a recognized exchange before they can invest. By listing on TISE, issuers gain access to a broader pool of international investors, including pension funds, insurance companies, and asset managers. This expanded reach can improve liquidity and potentially reduce the cost of capital.
Efficient and Flexible Listing Process
Speed and cost matter in capital markets. TISE is known for its pragmatic approach, competitive pricing, and quick turnaround times. The streamlined process allows issuers to list securities efficiently without unnecessary complexity, making it ideal for time-sensitive transactions.
Supporting ESG and Green Finance
Investor demand for sustainable finance continues to grow. TISE offers dedicated segments for green bonds and ESG-linked instruments, enabling issuers to showcase their commitment to responsible investment. This can enhance marketability and align with the sustainability goals of both issuers and investors.
How Trident Trust Can Help
Navigating the listing process can feel complex, but working with an experienced listing agent like Trident Trust simplifies the journey. As a trusted global provider of corporate, fiduciary, and fund services, Trident Trust offers expert guidance on TISE’s requirements, prepares and submits listing applications and ensures compliance throughout the process. Our extensive experience in listing debt and equity securities on TISE and our practical approach to listing applications helps issuers achieve a smooth, efficient listing, maximizing the benefits of TISE while minimizing administrative burden.
If you have found this article of interest and wish to find out more about how Trident can assist you through its listing agent services, please reach out to Matthew Sarl.