LONDON - Amundi Physical Metals plc has expanded its gold-linked exchange-traded commodities (ETC) program with the issuance of 95,000 new ETC securities, known as Tranche 625 of the Amundi Physical Gold ETC. This brings the aggregate number of ETC securities in the series to 49,203,155.00 immediately following the issue.
The ETC securities, each initially representing 0.04 fine troy ounces of gold, provide investors with exposure to gold without the necessity of taking physical delivery. The Amundi Physical Gold ETC is part of a secured precious metal linked ETC securities program, offering a way to invest in gold that parallels direct gold investments.
Each ETC security is backed by gold held by the custodian, HSBC (LON:HSBA) Bank plc, primarily on an allocated basis, ensuring segregation of the gold in the London vault of the custodian. The issuer has stated that the total expense ratio (TER) is 0.12% per annum, which is used to fund the operational fee to Amundi Asset Management S.A.S, the advisor.
The newly issued tranche, with an issue date set for November 29, 2024, will mature on May 23, 2118. The securities are subject to the regulatory laws referenced to the date of May 21, 2019, and board approval for the issuance was obtained on April 25, 2019.
Applications have been made for the ETC securities to be admitted to Euronext (EPA:ENX) Paris and for trading on its regulated market, as well as to Euronext Amsterdam, the Deutsche Börse, the Borsa Italiana, the London Stock Exchange (LON:LSEG), and the International Quotation System of the Mexican Stock Exchange, pursuant to private placement exemptions.
The ETC securities are designed to offer investors an alternative means of gaining exposure to the gold market through the securities market, with an estimated total net proceeds of the issue at USD 9,958,755.00. The information is based on a press release statement.
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