EuroMTS Launches EuroGlobalMTS, The Market For Euro-Denominated Sovereign Bonds Of Non-EU Countries

EuroMTS is pleased to announce the launch of “EuroGlobalMTS,” the market for the trading of euro-denominated securities issued by non-European Union governments, in mid-June. This initiative broadens the scope of EuroMTS benchmark markets for euro-denominated bonds, which began with the establishment of the € 5 billion Eurobenchmark Bond in 1999 and continued through, in line with European Union enlargement, to the launch of NewEuroMTS in 2003 for the euro benchmark bonds of the New EU Member States.

Issuers whose bonds would be immediately eligible for trading on EuroGlobalMTS include: Bulgaria, Croatia, Romania, Brazil, China, Mexico, South Africa, Turkey and Venezuela. The new market will help promote transparent, efficient and liquid trading of these countries’ external euro-denominated debt, which is expected to grow as the euro gains importance as a global currency.

EuroGlobalMTS will be governed by a committee composed of 12 investment banks that participate in the relevant securities markets. Involvement of the issuing entities will also be sought in the organisation of the new market. To be eligible for inclusion on EuroGlobalMTS, bonds from Central and Eastern European issuers must have a minimum outstanding size of € 500 million, whilst bonds from Latin American, Asian or other issuers must be outstanding for a minimum of €1 billion. Bonds must also have the support of seven market makers, which will commit to continuously quote selected bonds at an agreed upon maximum bid-offer spread and minimum size.

In addition to the Dealers, MTS extensively consulted all Issuers achieving a unanimous consensus with respect to the structure of the market and the expectation of creating the benefits associated with the MTS market model.

“EuroGlobalMTS gives us an opportunity to increase visibility in the European capital markets and achieve higher investor penetration,” said Dragos Neacsu, Secretary of State at the Romanian Ministry of Finance. “We are very excited about having our bonds included in this new segment as we expect to see their liquidity grow through the established business model of EuroMTS and through exposure to a wider pool of international investors.”

Turkey's eligibility for four bonds on EuroGlobalMTS represents an important milestone, given EuroMTS' status as the benchmark for European government bond trading," said Ibrahim H. Canakci, Undersecretary of the Turkish Treasury. "The inclusion of our bonds in this new market furthers our plans to integrate Turkish debt with the European capital markets."