New Zealand Exchange Limited (NZX) is pleased to welcome a further two series of Telecom Warrants onto the market from UBS Securities New Zealand Limited.
The two new warrants list on the NZSX today under the NZX codes TELIUC and TELIUD.
There has been significant growth in the trading of warrants in 2006, with 5,934 trades and $70 million in value traded year to date. These trades have a positive impact on the underlying liquidity of the shares they represent.
NZX Head of Products, Geoff Brown said, “NZX supports the commitment of UBS to grow the number of products in this investment category, because they deliver benefits to both investors and the market.”
Warrants are primarily used by investors as a means of leveraging their portfolio. They enable investors to essentially ‘lay-by’ their shares by putting down an initial, partial payment, receiving entitlements (e.g. dividends) throughout the lifecycle of the warrant, and paying a final instalment on the maturity date.
- TELIUC involves a loan of $3.75 and matures on 5 March 2008.
- TELIUD involves a loan of $2.75 and matures on 2 September 2008.
These two series increase the number of instalment warrants on offer (by both UBS and ABN AMRO) to 30.
Investors should direct enquiries and requests for copies of the UBS Telecom Instalment Investment Statement to UBS or First NZ Capital Securities Limited.
