Amundi issues new tranche of gold-backed ETC securities

Published 14/03/2025, 12:00
Amundi issues new tranche of gold-backed ETC securities

LONDON - Amundi Physical Metals plc has announced the issuance of a new tranche of its Amundi Physical Gold ETC, a commodity-linked security that provides exposure to the price of gold. The new tranche, numbered 670, consists of 828,000 ETC securities and follows the issue of over 56 million securities since the Series’ inception on May 23, 2019.

The ETC securities are designed to offer investors a way to gain exposure to gold prices without the need for physical delivery. Each ETC Security is linked to a specific amount of gold, known as the Metal Entitlement, which decreases over time to fund the issuer’s operational fee through the Total (EPA:TTEF) Expense Ratio, currently set at 0.12% per annum.

Amundi Physical Metals plc, incorporated in Ireland, operates as a special purpose vehicle with the sole activity of issuing ETC securities backed by gold. The issuer’s obligations under the ETC securities are secured by the underlying gold, held by HSBC Bank plc as the custodian.

The ETC securities, which are denominated in USD, have a scheduled maturity date of May 23, 2118, and are secured, limited recourse obligations of the issuer. They are freely transferable, subject to certain restrictions, and have been admitted to trading on multiple regulated markets, including Euronext (EPA:ENX) Paris, Euronext Amsterdam, Deutsche Börse, Borsa Italiana, and the London Stock Exchange (LON:LSEG). Applications have also been made for the securities to be admitted to trading on the International Quotation System of the Mexican Stock Exchange.

Investors should note that the value and secondary market price of the ETC securities will fluctuate with the price of gold. The securities are subject to market perception, the creditworthiness of transaction parties, and market liquidity. The issuer also reserves the right to redeem the ETC securities early under certain conditions.

The information is based on a press release statement from Amundi Physical Metals plc.

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