Amundi expands gold-backed ETC offerings

LONDON - Amundi Physical Metals plc (GLDA) has announced the issuance of 243,200 new ETC Securities, identified as Tranche 669 under its Amundi Physical Gold ETC, as part of its Secured Precious Metal Linked ETC Securities Programme. This latest tranche brings the total number of ETC Securities for the series to 55,716,559, each with a metal entitlement of 0.03968147 fine troy ounces as of the subscription trade date.

The Amundi Physical Gold ETC, first issued on May 23, 2019, is designed to offer investors exposure to gold prices without the need for physical delivery. The ETC Securities are backed by gold held by HSBC Bank plc as the custodian, generally on an allocated basis, ensuring a segregated account for the series.

Investors can participate through Authorized Participants, who are allowed to directly subscribe or redeem the ETC Securities with the issuer. The ETC Securities are listed and admitted to trading on various regulated markets, including Euronext (EPA:ENX) Paris, Euronext Amsterdam, Deutsche Börse, Borsa Italiana, and the London Stock Exchange (LON:LSEG), as well as on the International Quotation System of the Mexican Stock Exchange.

The ETC Securities carry a Total (EPA:TTEF) Expense Ratio of 0.12% per annum and have a scheduled maturity date of May 23, 2118. The issuer has made provisions for fees related to trading and potential redemption, with a nominal amount set at USD 5.085, representing 10 percent of the issue price per ETC Security as at the Series Issue Date, and a specified interest amount of USD 0.051.

Investors are advised that the value and trading price of the ETC Securities are influenced by the fluctuations in the gold price, and while offering a similar experience to direct gold investment, they do not confer ownership of the underlying gold. The ETC Securities are secured, limited recourse obligations of the issuer, and in the event of insufficient proceeds from the secured property, investors may not receive the full nominal amount or specified interest amount.

This issuance, based on a press release statement, adds to Amundi’s offerings in the gold-backed exchange-traded commodities space, providing investors with an alternative to gain exposure to the gold market.

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