Brussels – Kingdom (Tadawul:) Belgian has begun a pre-stabilization period starting today, in anticipation of its upcoming issuance of 10-year fixed-rate bonds, scheduled to mature on June 22, 2035. JPMorgan SE has been appointed as the stabilizer. Coordinated with BNP Paribas (OTC:) Fortis (NYSE:), Credit Agricole (OTC:) CIB, HSBC, and Morgan Stanley (NYSE:) act as stabilization managers.
The total face amount of the new securities is set at the Euro benchmark level, with the exact offer price yet to be confirmed. The notes, which will be available in denominations and increments of €0.01, will be listed on the Brussels Stock Exchange.
The stabilization period, which begins today, is expected to last until February 7, 2025. During this period, stabilization managers are permitted to over-allocate securities by up to 5% above the aggregate notional amount. These actions are intended to support the market price of securities after issuance and may involve transactions to maintain prices above market levels. However, there is no guarantee that stabilization activities will be implemented, and if initiated, they may be stopped at any time within the specified time frame.
This stabilization step is consistent with the Commission-delegated Regulation EU/xxx/2016 under the Market Abuse Regulation (EU/596/2016). Overallotment and stabilization transactions, if undertaken, will be carried out over-the-counter, with confirmed locations.
The announcement states that this information is intended only for those with professional investment experience or high net worth individuals in the UK, and should not be relied upon by other UK residents. Likewise, within the European Economic Area (EEA), only eligible investors as defined in the Prospectus Directive or those to whom the offer may lawfully be directed should act on this information.
This strategic financial maneuver is based on a press release, and it provides a window into the Kingdom of Belgium’s approach to managing its new debt issuances in light of the current economic climate.
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