Custody services - Portugal

02.01.2018

Debt securities include the following:

  • Fixed rate bonds with a rating on issuance date being not less than “A”;
  • Floating rate notes with a rating on issuance date not less than “A” and coupon rate announced at least three local business days before payment date:
    Based on the positions recorded at the close of business on the local interest payment date or final redemption date, interest or redemption proceeds from the above-mentioned Portuguese debt instruments are credited to the account holder in CBL on the local business day following the interest payment date or maturity date with value payment date.
  • Other Portuguese debt instruments
    Based on the positions recorded at the close of business one day prior to the interest payment date or final redemption date, interest or redemption proceeds are credited to the account holder in CBL on the interest payment date or maturity date with same-day value.

Income on trades with domestic securities is determined according to the settlement date.

The convention applicable to public debt securities from 1 January 1999 is as follows:

  • New fixed rate Government bonds (OTs)
    Interest payments on new OTs are paid annually on an actual/actual basis. Coupon and redemption payments falling on a non-business day are paid on the first business day following the payment date. After the first coupon (which may be for an irregular amount), all subsequent coupon amounts are identical.
  • Redenominated fixed rate OTs
    The changes in the convention applied to redenominated OTs come into force on the first coupon payment date to fall in 1999. The interest payment frequency (annual or semi-annual) is maintained but the interest payments are calculated on an actual/actual basis (as distinct from the 30-day month/360 basis applied up until then).
    Coupon and redemption payments falling on a non-business day are paid on the last business day before the payment date.
  • Redenominated floating rate OTs (OTRV)
    There is no change in the convention applied to existing OTRV.

Income collection

Debt securities

Service offered
Notification to customers
Standard reporting.
Payment of proceeds
Interest on bonds is usually credited to the customer's account in same-day processing for coupon payment date after their receipt from the depository with same-day value.

Equities

Service offered
Notification to customers
Standard reporting.
Payment of proceeds
Based on the positions recorded on the local dividend payment date, dividends are credited to the CBL account holder on the local business day following the local dividend payment date, with value payment date. Entitlements to be paid in equities are determined according to the settled position.

Corporate actions

Service offeredRemarks
Notification to customers
Standard reporting.
Instruction to CBL
Customers may instruct CBL to carry out options foreseen in the terms and conditions of the underlying type of security. These options include, but are not limited to, put options, conversions, exercises of warrants, exchanges, detachment of warrants etc.In addition, CBL informs customers on an “as and if received” basis of unscheduled securities events occurring on account holdings, such as rights offers, reinvestment options, exchange offers, purchase offers, mergers etc.

Proxy voting procedures

Proxy voting services are available in CBL for this market. For details about the proxy voting services offered by CBL, please refer to the CBL Customer Handbook and, for the market specific practices, please refer to the Market Profile- Portugal.

Entitlement compensation rules

Please refer to the Entitlement Compensation Rules - Portugal.