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SGX and Euroclear To Launch Orchid Bond

SGX and Euroclear To Launch Orchid Bond

(24 February 2021 – Singapore) Singapore Exchange (SGX) is collaborating with Euroclear Bank to launch a new Orchid bond structure in Singapore, combining domestic bond issuance with global distribution channels.

Through this partnership, international investors will be able to buy bonds issued by Singapore-based issuers directly on SGX’s wholly-owned subsidiary, the Central Depository (CDP) via Euroclear. Investors will benefit from real-time multi-currency delivery versus payment (DVP) settlement with any counterparty within Euroclear's network.

HSBC was the arranger, custodian bank and paying agent in the setting up of the Orchid bond structure. SGX and Euroclear are also looking to extend the offering beyond Singapore to other regional issuers.

“Asia is home to some of the world’s fastest growing economies and we continue to see issuers tapping into debt capital markets. This offering will deepen the bond market’s liquidity pool and has the potential to significantly expand the issuers’ investor base,” said SGX Head of Fixed Income, Currencies and Commodities (FICC) Senior Managing Director Lee Beng Hong.

“Within our ecosystem we see continued scope for this structure laying the foundation for ESG bond issuance in foreign currencies in the near future,” said Euroclear Global Head of Capital Markets and Funds Services Stephan Pouyat.

“Current market infrastructure must adapt to keep pace with a highly digitised and international investor community. Technology is the key to unlocking greater market access,” said HSBC Singapore Head of Global Markets Gavin Powell.

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