Singapore Exchange (SGX) and Euroclear Bank, the Brussels-based international central securities depositary, have launched their Orchid bond structure in Singapore that combines domestic bond issuance with global distribution channels.
International investors will be able to purchase bonds issued by Singapore-based issuers directly on SGX’s subsidiary, The Central Depository via Euroclear, and will benefit from real-time, multi-currency delivery versus payment settlement with any counterparty within Euroclear’s network. SGX and Euroclear will look to extend the offering beyond Singapore to other regional issuers.
SGX is Asia’s most global bond listing venue, having listed over 6,600 securities by more than 1,600 issuers from 66 countries with amounts issued totalling US$2.2 trillion in 26 currencies. The addition of the Orchid bond structure allows market participants to use SGX as a one-stop issuance, listing and distribution platform for regional issuance.
Euroclear and SGX were both supported by HSBC in its capacity as arranger, custodian bank and paying agent in the setting up of the Orchid bond structure.
The solution allows issuers to tap into SGX’s listing and depository capabilities, while at the same time giving global investors access to the fast-growing Asian bond market, says Lee Beng Hong, SGX’s senior managing director, head of fixed income, currencies and commodities. “Asia is home to some of the world’s fastest-growing economies and we continue to see issuers tapping into debt capital markets,” he adds. “This offering will deepen the bond market’s liquidity pool and has the potential to significantly expand the issuers’ investor base.”