NYSE Euronext Lisbon lists from today Certificates on Government Bonds (“Certificados OT”), an innovative product issued by Commerzbank.
With this new financial product, investors have an opportunity to gain exposure to Portuguese public debt in a transparent, easy and low-cost way. The “Certificados OT” replicate an underlying index(*) calculated by Commerzbank, without any leverage, and benefit from the continuous presence of a liquidity provider.
As Commerzbank's “Certificados OT” do not distribute any regular payments the fiscal treatment of these certificates is based on the capital gain tax regime only. When compared with the current tax regulation applicable to a direct investment in the relevant treasury bonds, this can be considered as an important advantage for investors.
At the launch of this product, Miguel Geraldes, Head of Cash and Listing for NYSE Euronext Lisbon said: “With the launch of this new product and its listing in NYSE Euronext Lisbon, private and institutional investors now have access to the revenues generated by the Portuguese Treasury Bonds in an efficient way.”
Hélio da Silva Cláudio, Director Public Distribution International of Commerzbank, added:”The launching of “Certificados OT” fits into Commerzbank’s growth objectives set for the Portuguese market. We are focused on offering new products aimed at eliminating inefficiencies in the trading of certain securities and financial markets currently not available to the Portuguese investors. We intend to enlarge the offer of these products to a wider range of underlying products over the next 12 months.”
Pedro Fernandes, European Head of ETP’s at NYSE Euronext, explained: “Our leading issuer community continues to create innovative products with key benefits for investors. They are supported by the NYSE Euronext regulated market that delivers superior transparency, liquidity, and security.”
(*) The underlying index is calculated by Commerzbank and it reflects the price of the Treasury Bond correspondent, adding the respective interest rate minus the annual index management of 0,75%.
This is a total return index. The paid coupons will be virtually reinvested through the buying of Treasury Bonds.