Premium segment launched for trading corporate bonds - Deutsche Börse issues first bond in Prime Standard for corporate bonds
Deutsche Börse's new premium corporate bond segment launches today. The first tradable bond is from Deutsche Börse AG (ISIN DE000A1RE1W1).
The Prime Standard for bonds offers companies an exchange segment with the highest transparency requirements in Europe. Companies trading their bonds there raise their profile and thus increase their visibility among potential investors. In addition to addressing institutional investors the world over, companies issuing a large volume of bonds will gain access to a broader and more direct distribution channel to private investors for the first time.
“The Prime Standard for corporate bonds is a systematic extension of our offering for raising debt capital. The new segment is aimed at larger companies – both listed and non-listed – that wish to place bonds with a volume of EUR 100 million or more”, said Alexander Höptner, Head of Markets Services at Deutsche Börse “We have already successfully introduced the Entry Standard for bonds in the past year; the Prime Standard for bonds is the logical extension.”
A listing in the Prime Standard for bonds also means more transparent pricing than in OTC trading. Deutsche Börse is thus promoting market integrity in trading for this asset class.
Companies wishing to have their bonds listed in the new premium segment have to ensure ongoing and prompt financial reporting and provide at least six key company figures in accordance with the DVFA (Society of Investment Professionals in Germany) standard on an annual basis. They must also have an up-to-date company or bond rating at all times and hold an annual analyst conference for credit investors and analysts.