Issuance with T2S
T2S complements the proven worldwide issuance and distribution services of Clearstream’s Global Issuer Hub. Issuers benefit from the best of both worlds: the holistic services of the Global Issuer Hub for international issuances as well as more efficient issuance in Europe.
New study on the benefits of T2S for issuance
T2S offers a host of benefits to the issuing community and will alter the European issuance landscape. Coupled with the EU Central Securities Depository Regulation (CSDR), which aims to make CSDs more competitive and bring central securities depositories onto a level playing field, issuance is set to become more cost-effective, efficient and standardised.
As the landscape for issuance evolves issuers will be increasingly looking to more diverse instruments in order to facilitate and broaded investments. The findings from the Aite Group report point particularly towards an uptick in green bonds and new Asian bonds, all of which can be served by Clearstream.
You can read the full report here.
Streamlined issuance in Europe
By choosing Clearstream as their single point of access to T2S markets, issuers can consolidate all their issuances in the Global Issuer Hub and benefit from lower costs. For example, consider a Belgian issuer targeting local Spanish and German investors.
Although this is possible without T2S, the costs are significant as the issuer either needs to be present or represented in each local market or the investors need to appoint local custodians in the issuer’s home market. Under T2S, a Belgian issuer is able to centralise the primary issuance via Clearstream which is then distributed to German, Spanish or any other European investors via T2S.
In addition, an auto-collateralisation function offered via T2S enables issuers and investors to reduce their needs for cash and credit lines. In particular, T2S auto-collateralisation is attractive for larger financial issuers looking to net off their cash flows on redemption or interest payment days.
Global issuance and distribution
The reach of the Global Issuer Hub exceeds the T2S area. Issuers worldwide can choose from almost 100 denomination currencies, more than 20 legal frameworks, over 40 settlement currencies and distribution channels to 2,500 customers and more than 50 CSDs around the world. Over 14,000 issuers already avail of the extensive suite of Global Issuer Hub services at Clearstream.
Diverse suite of instruments
Our Global Issuer Hub is ready to serve a multitude of issuer demands given the growing appetite for more diverse investment instruments. Whether issuers are looking at new refinancing options, infrastructure projects or supporting sustainability via green bonds, we provide a wealth of expertise and experience in advising on a variety of bond issuance and settlement.
Multi-currency and cross-border solutions
Clearstream offers customers a mix of cross-border, multi-currency issuance solutions thanks to our harmonised service offering through our German central securities depository (CSD), international central securities depository (ICSD) for the international Eurobond market as well as LuxCSD – the “boutique” Luxembourg CSD.