New option for bond listings in Norway

Nordic market bond terms typically require bond issuers to list bonds on Euronext Oslo Børs (the Norwegian regulated market for bonds) or register bonds on Euronext ABM within six to twelve months from the issue date. In recent years, bond terms have also increasingly required registration on a less regulated market (such as Frankfurt Open Market) within one to two months of the issue date, due to investor requirements. Early registration through the new Fast Entry segment will enable bond issuers to admit bonds to trading in Oslo quicker than what has been possible in the Norwegian market up to now. 

Wikborg Rein views the introduction of the Fast Entry segment as a valuable addition to the Oslo Stock Exchange's bond trading offerings and an adequate response to investor demands for faster bond listings in Oslo. The segment gives issuers flexibility to agree with investors specific reporting requirements for interim accounts in the initial period (such as delayed first reporting), but at the same time ensures that MAR equivalent disclosure obligations apply.

Neither the main segment nor the Fast Entry segment of Euronext ABM is an MTF or a regulated market and therefore the EU Market Abuse Regulation will not apply directly to the issuers of listed bonds. 

A temporary platform

For bonds to be eligible for Fast Entry registration, the bond terms must include an obligation to register or list the bonds on the ordinary Euronext ABM segment or Euronext Oslo Børs within twelve months of the issue date. Accordingly, Fast Entry will serve as a temporary platform, with all registered bonds being required to transfer to either the ordinary Euronext ABM segment or Euronext Oslo Børs within a limit of fourteen months of the issue date. Extensions may be granted under certain conditions.

Simplified documentation requirements

Registration on Fast Entry requires significantly reduced documentation compared to an ordinary Euronext ABM registration. There is no requirement to prepare an admission document, and the registration process is instead based on a standard application form where documentation from the bond issue is appended. 

A faster application process

The streamlined listing framework enables bond issuers to complete registration on Fast Entry significantly faster than in an ordinary Euronext ABM registration process. The Oslo Stock Exchange has set indicative processing times from submission of the application and until registration of the bonds:

• 2 business days, where the issuer already has, or has had, financial instruments registered or listed on Euronext ABM, Fast Entry or any of the Oslo Stock Exchange's trading venues during the preceding twelve months.
• 5 business days, where a trustee has been appointed for the bonds.
• 8 business days, where no trustee has been appointed for the bonds. 

Continuing obligations on Fast Entry

Following registration, issuers are subject to the same continuing obligations on Fast Entry as on Euronext ABM, with the key difference of offering more flexibility for interim accounts.