Oslo Børs: New Bond Market Launched Today

Today marks the launch by Oslo Børs of a new marketplace for listing and trading in bonds and short-term fixed income securities. The new market is known as ABM - the Alternative Bond Market. The existing Norwegian bond market will be subject to new and stricter requirements as a result of the implementation of new EU directives. The ABM is intended for issuers who believe that the new requirements will be too extensive.

Future changes in the rules for the existing bond market will include new requirements on the publication of prospectuses, and issuers will have to produce consolidated accounts in accordance with IFRS with effect from 2007. Oslo Børs hopes that the launch of the ABM will provide an alternative where the rules and regulations can largely be ‘tailor made’ to meet the requirements of Norwegian market participants.

Once a bond issue has been admitted to listing on the ABM, the issuer will be subject to a duty of disclosure largely equivalent to that required by the existing market. This means that, unlike an unlisted market, trading on the ABM will take place in a regulated form with good transparency for investors. The main distinction between the ABM and the existing market will relate to the new EU requirements. In addition, the process of applying to list a bond issue on the ABM will be somewhat simplified compared to the existing market.

A separate web site has been developed for the ABM at www.abmportal.no. The information available on this portal will include prices and market data, announcements by issuers and their financial calendars, as well as more detailed information on the ABM.