Singapore Exchange and Brussels-based international central securities depository Euroclear Bank have announced the start of the Orchid bond structure in Singapore.
The partnership will combine domestic bond issuance with global distribution channels, allowing international investors to purchase bonds issued by Singapore-based issuers directly on the Central Depository via Euroclear, an announcement on Friday said.
As such, they will benefit from real-time, multi-currency delivery versus payment settlement with any counterparty within Euroclear’s network, the announcement said. HSBC supported the launch in its capacity as the arranger, custodian bank and paying agent in the setting up of the Orchid bond structure.
Growing Demand
«Asia is home to some of the world’s fastest-growing economies and we continue to see issuers tapping into debt capital markets. This offering will deepen the bond market’s liquidity pool and has the potential to significantly expand the issuers’ investor base,» Lee Beng Hong, SGX senior managing director, said.
Stephan Pouyat, Euroclear global head of capital markets and funds services, said the Orchid structure «continues the successful momentum we have seen in the Asia region over the past year for this type of tailored solution.»
SGX and Euroclear plan to extend the offering beyond Singapore to other regional issuers.
