LONDON - Amundi Physical Metals plc has announced the issuance of a new tranche of its exchange-traded commodity (ETC), the Amundi Physical Gold ETC, under its Secured Precious Metal Linked ETC Securities Programme. This latest tranche, numbered 643, consists of 300,000 ETC Securities and follows the company’s strategy to provide investment opportunities linked to the performance of physical gold.
The ETC Securities, which are designed to track the price of gold, offer investors exposure to the metal without the need to take physical delivery. Each ETC Security in this tranche has an initial metal entitlement of 0.03968957 fine troy ounces as of the subscription trade date. The issue date for the tranche is set for Monday, January 13, 2025, with a scheduled maturity date far in the future on May 23, 2118.
Amundi Physical Metals plc has confirmed that applications have been made for the ETC Securities to be admitted to trading on several prominent exchanges, including Euronext (EPA:ENX) Paris, Euronext Amsterdam, Deutsche Börse, Borsa Italiana, and the London Stock Exchange (LON:LSEG). Additionally, they will be available on the International Quotation System of the Mexican Stock Exchange, adhering to private placement exemptions.
The total net proceeds from the issue are estimated at USD 31,846,110.00, with related expenses for admission to trading on the relevant exchanges amounting to approximately €3,000. The ETC Securities carry a total expense ratio of 0.12% per annum, which is deducted from the metal entitlement to cover operational fees.
Investors interested in the gold market may find this financial instrument appealing as it provides a way to gain exposure to gold price movements without owning the physical metal. The ETC Securities are backed by gold held in allocated accounts by HSBC Bank plc, acting as the custodian.
This issuance is part of Amundi’s ongoing efforts to offer diverse investment products in the precious metals space. The company emphasizes that the ETC Securities are secured by the gold itself, with limited recourse to other assets of the issuer. This approach aims to provide security for investors while also offering the potential for investment growth linked to the market price of gold.
The information for this article is based on a press release statement from Amundi Physical Metals plc.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.