LONDON - Nomura Financial Products Europe GmbH has announced the completion of a post-stabilisation period for Aareal Bank (ETR:ARLG) AG's GBP 325 million bond issuance, as per a statement released today. The stabilisation manager, Nomura, was appointed to oversee the process, which could include transactions to support the market price of the securities.
The bond, with a 5% semi-annual fixed coupon, is due on November 21, 2024, and will mature on March 10, 2028. The ISIN for this bond is XS2941482486, and the offer price was set at 100. The stabilisation period began on November 13, 2024, and was expected to end no later than today, December 20, 2024. During this time, Nomura was authorized to use an over-allotment facility up to 5% of the aggregate nominal amount to support the market price.
Stabilisation activities are a common practice in the securities market, aimed at preventing price volatility following the launch of a new security. These measures are undertaken within the confines of certain laws and rules, including the Commission Delegated Regulation (EU) 2016/1052 under the Market Abuse Regulation (EU/596/2014) and the UK FCA Stabilisation Binding Technical Standards.
The announcement clarified that the stabilisation efforts might not guarantee the occurrence of such activities and could be halted at any time. The securities were traded on the Euroclear and Clear Stream platforms during the stabilisation period.
The bond offer and related stabilisation measures were directed towards professional investors in the United Kingdom (TADAWUL:4280) with experience in investment matters, and high net worth individuals, as well as qualified investors in the European Economic Area, in accordance with the Financial Services and Markets Act 2000 and the EEA Prospectus Regulation.
The securities discussed have not been registered under the United States Securities Act of 1933 and, therefore, cannot be offered or sold within the United States absent registration or an exemption from registration. This also indicated that there would be no public offering of the securities in the United States.
This financial move by Aareal Bank AG, based on a press release statement, represents a strategic effort to manage the price stability of its newly issued bonds in the market.
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