BondCom has formed an 'Issuer Services Agency' to provide these new and innovative services for issuers of debt securities seeking to communicate efficiently with their bondholders and to reduce the expenses related to paper-based processes. The services have already been fully proven in recent restructuring events and now will be launched globally with Clearstream's support.
Clearstream, the custody and settlement division of Deutsche Börse Group, will support the service with operational and technological resources to bring the benefits to its customers. Clearstream will work with Bondcom and debt issuers to create standardised procedures and IT enhancements to improve efficiency levels and straight-through processing (STP) rates. Clearstream will reconcile the customer instructions and their positions in an automated and secure environment which will deliver greater efficiency in the distribution of information to and from bondholders.
The services will focus on cost reduction, with debt issuers' costs to be reduced by as much as €100,000 per initiative, by saving on physical printing and delivery of documents. The services will complement SWIFT messaging formats with additional internet-based communication methods that will enable bondholders to navigate through complex documents and to respond electronically to any required decisions.
Also, BondCom and Clearstream will seek to minimise the operational burdens and risks facing Clearstream's customers across the world including custodian banks and broker/dealers.
Robert Apfel, President, Bondholder Communications
Group, commented
"Clearstream and its 2,000 customers will benefit from
the streamlining of the existing processes, with the
use of BondCom's innovative electronic solutions. This
service will offer pragmatic solutions to both issuers
and custodians, and we are very pleased to be working
with Clearstream".
Matthias Ganz, Chief Operating Officer, Clearstream said "Clearstream recognizes the added value that BondCom's new service will offer to the market, as significant operational efficiencies can be derived for all parties involved. We believe the service will substantially reduce the workload and risk faced by banks and brokerage houses."
About Bondholder Communications Group
Bondholder Communications Group (BondCom) is the
world's only global bondholder communications
specialist. With offices in New York, London and Hong
Kong, BondCom locates, identifies and facilitates communications with bondholders, typically in connection with tender offers, exchange offers, consent solicitations and restructurings. Totally focused on debt, BondCom guides clients over the hurdles associated with reaching their bond investors. Working closely with issuers and advisors, BondCom helps to develop a strategy that ensures success all the way through to settlement. For more information, visit www.bondcom.com
About Clearstream
Clearstream offers a comprehensive custody and
settlement service for equities and bonds both
domestic and cross-border and investment funds to a
global customer base. Clearstream International has
now been fully integrated into Deutsche Börse Group,
the world's largest exchange operations company when
measured by market capitalisation. The combined group
provides technology, services and products from
trading and information products to clearing,
settlement and custody based on straight-through
processing and interoperability standards to all
stages of the processing chain. For more information,
visit www.clearstream.com
