Lower prices attract Nordic issuance
As from January 2018, issuers using VP SECURITIES will experience a lower recurring cost of issued bonds in DKK and will be fully exempt from recurring costs on bond issuance in other currencies
The price reduction is a structural adjustment to harmonise VP’s pricing for issuers with other European CSDs’ pricing, and the aim is to provide Nordic issuers and issuing agents with access to the European investor hub via T2S at competitive prices.
VP SECURITIES has made a substantial price reduction for bond issuance in DKK, and has gone even further for all other currencies, such as EUR and SEK, for which VP offers a full range of products for Clearing & Settlement and Corporate Actions. As from 1 January 2018, non-DKK issuance will have no recurring fee for the issued bonds. The price reduction will thus benefit all current and coming issuance customers.
“For issuers, our new price model is good news, as they will have all the benefits from issuing with a European reach from a Nordic infrastructure. Apart from our highly reliable systems and automated functionality with best-in-class processes, we are now also adapting to the European pricing philosophy, whereby issuers pay less for issuance at a CSD. This combination is attractive for Nordic issuers and we hope to attract higher volumes of bond issuance for our infrastructure, which in turn will lead to lower marginal costs,” says Head of Issuer Products Bjørn Stendorph Crepaz of VP SECURITIES.
“Issuers are looking for the best distribution, low risk and the convenience of using a proven relationship with the CSD. We can offer the same reach as international CSDs, combined with very low risk, since we settle in central bank money. All in all, by adjusting our pricing we are offering a very competitive alternative to competing CSDs,” he adds.
One-stop-shop for Nordic issuance
This cost reduction makes VP competitive when it comes to the cost structure for issuance in EUR. But it does not stop there for VP.
“Our ambition is to create a one-stop-shop for Nordic issuers and issuing agents for bond issuance in EUR, DKK, SEK, and soon also NOK. We offer a full product range of Issuance, Clearing & Settlement and Corporate Actions in three of the Nordic currencies, and we are currently taking steps to also provide central bank money clearing in NOK. This will make us a truly Nordic CSD, with the scope to become the preferred CSD partner with European functionality for our Nordic Issuers and Issuing Agents,” says Bjørn Stendorph Crepaz.
VP therefore invites Issuing Agents and Issuers in the Nordics to engage in a dialogue on the streamlining of issuance processes across currencies, in order to achieve the best possible solution.
For more information:
Contact Head of Issuer Products Bjørn Stendorph Crepaz or Customer & Relations Director Henrik Ohlsen.