LGB has made arrangements for the settlement of an issue of Medium Term Notes (MTNs) by SRT Marine Systems plc through Euroclear’s CREST settlement system.
CREST is the UK-based central securities depository and operator of an electronic settlement system that is used to settle a broad range of domestic and international securities.
By dematerialising notes through CREST, LGB has made it possible for investors to hold and transfer securities in electronic form instead of physical certificates. This development will facilitate purchases of notes by wealth managers and institutional investors who wish to utilise their existing nominee and custody procedures.
LGB’s MTNs are already displayed in Bloomberg and are listed on a recognised stock exchange. These are three key factors in enabling the notes to be bought and sold in the secondary market. The transferability of the notes was particularly important in the case of the latest SRT issue, which was underwritten. Over 70% of the notes have been purchased on a secondary basis.
CREST settlement will be a standard feature of future issues.
