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Amundi expands gold-linked ETC offerings

Published 05/12/2024, 14:18
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LONDON - Amundi Physical Metals plc (GLDA) has announced the issuance of 388,000 additional ETC Securities, expanding its Amundi Physical Gold ETC offerings. This issuance, termed Tranche 626, is part of the company's ongoing efforts to provide investment opportunities linked to the performance of physical gold.

The new tranche, with an issue date of Monday, December 6, 2024, increases the aggregate number of ETC Securities in the series to 49,141,155. Each security is initially linked to 0.04 fine troy ounces of gold, with the entitlement decreasing over time to account for management fees.

The ETC Securities are part of a secured precious metal linked ETC program designed to offer investors exposure to gold without the need for physical delivery. The securities are backed by gold held by HSBC Bank plc as custodian, and the obligations of Amundi Physical Metals plc are secured by the gold assets linked to the ETC Securities.

Investors should note that the Total (EPA:TTEF) Expense Ratio for managing the ETC Securities is set at 0.12% per annum. These ETC Securities are scheduled to mature on May 23, 2118, and are subject to the regulatory framework established on May 21, 2019.

Applications have been made for the ETC Securities to be admitted to trading on several regulated markets, including Euronext (EPA:ENX) Paris, Euronext Amsterdam, Deutsche Börse, Borsa Italiana, the main market of the London Stock Exchange (LON:LSEG), and the International Quotation System of the Mexican Stock Exchange.

The offer aims to provide investors with an alternative means of gaining exposure to gold prices through the securities market. The net proceeds from the issuance will be used to hold gold in allocated accounts to meet the issuer's obligations under the ETC Securities.

It's important to understand that investing in these securities involves risks, including market price fluctuations of gold and the creditworthiness of transaction parties. The ETC Securities are not a direct investment in gold, and their performance may not fully mirror the price movements of the physical metal.

This issuance is based on a press release statement from Amundi Physical Metals plc, which provides full information on the issuer and the offer of the ETC Securities. Potential investors are advised to consider the detailed information provided in the base prospectus and the final terms to make informed investment decisions.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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