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Why list loans?
There are a number of reasons why many investors will only buy listed bonds and certificates, including:
- The requirement for an approved prospectus ensures that investors have access to all the information relevant to their investment decision
- Issuers have a continuing duty to provide the market with financial information and to notify any developments significant for the pricing of their interest-bearing securities
- Professional and systematic surveillance of the market ensures fair and proper trading
- Organised and efficient trading through a reliable trading system
- Information on the market and individual issues is available on the Oslo Børs website.
In addition to gaining access to more investors, listing interest-bearing securities on Oslo Børs offers a number of other benefits:
- Publicity for the issuer on the Oslo Børs website
- The issuer receives regular information, without charge, on the fixed-income market in general and its listed securities in particular
- Some brokers assert that investors accept a lower return for listed loans rather than unlisted loans, and this may help to reduce the issuer's financing costs.
Nordic ABM: The alternative bond market
Bond loans and certificate loans may also be listed on Nordic ABM, which is a marketplace administered and operated by Oslo Børs but is not a regulated market. The listing process for Nordic ABM is somewhat simpler than for the Oslo Børs marketplace , but the duties of issuers to provide information are virtually identical. More information on listing bond loans and certificate loans on Nordic ABM.