A: SenseCheck
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- 31 Aug 2023
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Yes
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The answers to questions like these are often in the Listing Particulars for a particular "issue" of debt securities in the form of bonds or notes ("Notes") and which may be divided into different "classes" of debt securities.
Notes are "issued" under a "Programme" and are issued in series (that means they come one after the other and are called (in this context) a "Series"). A Series may be further subdivided into "tranches" of Notes (each section or tranche is called a "Tranche"). In relation to a structured note issuance (which is what we do), a Tranche is each "class" of notes comprising the same issue. A tranche will be assigned characteristics which may vary from the other tranches (such as different rates of interest, repayment terms, credit rating and priority ranking); essentially affording each class a different risk profile to match the varying risk appetites of investors.
A Series may have one or more Tranches.
Each Tranche of Notes will be issued on the terms set out in BOTH the Listing Particulars and a document specific to every Tranche which is called the "Pricing Supplement" AND / OR which might be in a separate document specific to that Tranche called the "Drawdown Particulars". These must all be read together to understand the rules that apply to each Tranche.
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