The two new warrants listed yesterday under the NZX codes TELIUA and TELIUB.
NZX is delighted to see the category growing in New Zealand as warrants are primarily used by investors as a means of leveraging their portfolio. Warrants enable investors to essentially ‘lay-by' their shares by putting down an initial, partial payment, receiving entitlements (eg dividends) throughout the lifecycle of the warrant, and paying a final installment on the maturity date.
“We're very keen to see additional issuers and a broader range of products on the market. NZX is a very strong supporter of the efforts made to date by UBS and ABN Amro to ignite and grow the warrant category,” NZX markets development manager Geoff Brown said.
“With Telecom making up over 25 per cent of the NZX50 index, and forming an integral part of most portfolios, the leverage available via the UBS warrants will appeal to many investors,” Mr Brown said.
The two UBS Telecom Instalment Warrants have different features and benefits for investors. TELIUA has lower gearing, involves a loan of $3.00 and matures on 5 June 2007. TELIUB is more highly geared and matures on 5 December 2006 with a final payment of $5.00.
The UBS series joins 15 warrants on large listed company shares listed by ABN Amro earlier this year.
Investors should direct enquiries and requests for UBS Telecom Instalment Warrants Investment Statements to UBS or First NZ Capital.
More information on the UBS Telecom Instalment warrants can be found at www.ubs.com/equitysolutions. General information on warrants can be found at www.nzx.com.
