LONDON - Amundi Physical Metals plc has announced the issue of 88,400 new ETC Securities, which are part of Tranche 636 under its Secured Precious Metal Linked ETC Securities Programme. This issuance is set to occur on December 23, 2024, expanding the total number of ETC Securities immediately following the issue to 51,490,555.00.
The ETC Securities, linked to the Amundi Physical Gold ETC, offer investors exposure to gold prices without the necessity of taking physical delivery of the metal. Each ETC Security is associated with a specific amount of gold entitlement, initially set at 0.04 fine troy ounces. The entitlement decreases over time to cover operational expenses, with a Total (EPA:TTEF) Expense Ratio of 0.12% per annum.
The ETC Securities are secured obligations of Amundi Physical Metals plc, with limited recourse to the secured property, which primarily consists of gold. The securities are scheduled to mature on May 23, 2118, but they may be redeemed early under certain conditions, such as an issuer call redemption event or a market value redemption event.
Applications have been made for the ETC Securities to be admitted to trading on several regulated markets, including Euronext (EPA:ENX) Paris, Euronext Amsterdam, Deutsche Börse, Borsa Italiana, the London Stock Exchange (LON:LSEG), and the International Quotation System of the Mexican Stock Exchange. The ISIN for the ETC Securities is FR0013416716.
Investors are drawn to this form of security as an alternative means of gaining exposure to the gold market through the securities market, which simulates a direct investment in gold. The proceeds from the issuance of these ETC Securities will be used to fulfill the issuer's obligations under the series, primarily holding the gold in allocated accounts.
It is important to note that the value and price of the ETC Securities can be affected by various factors, including the price of gold, market perception, and the creditworthiness of transaction parties. The ETC Securities are subject to the credit risk of the issuer and other transaction parties and might not be suitable for all investors.
This article is based on a press release statement and is intended to inform investors about the issuance of a new tranche of ETC Securities by Amundi Physical Metals plc.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.