New Electronic Platform for €300bn Private Placement Bond Market Launched
Origin launches the beta-version of its private placement issuance platform for the Medium Term Note market with six investment banks, the dealers, and over 20 international borrowers
Origin’s platform offers a single platform for issuer funding programs, borrowing targets, and electronic record keeping of transaction steps.
Full launch of the platform is expected in the second half of 2017
London, 9 January 2017: In partnership with six investment banks and over 20 international debt issuers, Origin announces the beta-phase launch of its private placement platform today, and expects, as planned, to move towards a full launch later this year. Participants in the beta-version launch will be given the option to participate in the full launch.
Origin simplifies issuance in the Medium Term Note (‘MTN’) private placement market by acting as a central information source, bringing together MTN issuers and dealers. Dealers can receive target funding levels directly from issuers consolidated on one platform. In addition to simplifying the communication and workflow between dealers and their existing issuer clients, one of Origin’s principal aims is to foster connections and facilitate new business between dealers and issuers who haven’t previously had a relationship before.
Private placements MTNs, believed to amount to about a third of the €1trillion of investment grade debt issued annually in Europe, is a core segment of the debt markets: allowing issuers to efficiently raise capital at more attractive levels compared to the syndicated bond market, and providing investors with customised securities that specifically match their portfolio and investment requirements.
Ben Powell, Head of Funding for IFC, said “The private placement market is a very important part of our overall funding strategy. Origin simplifies what was once a manual process prone to inefficiency. It allows us to manage our dealer communication in one central place.”
In recent years, banks conducting private placement activities for issuers have faced a number of challenges including increasing regulatory requirements and cost pressures, requiring them to find ways to keep desk costs low while still providing a good service to issuers.
Using cutting-edge, cloud-based technology with bank-grade security measures, Origin’s platform provides the market with a timely solution offering greater transparency and more effective audit capabilities, as well as helping to satisfy both the current and expected regulatory requirements. And by simplifying much of the time consuming but necessary administrative work, dealers will be able to increase their effectiveness with their clients by focusing on more value-added conversations.
Issuers, who are increasingly looking to tap a more diverse investor base, can improve their communication and expand their conversations to a wider group of dealers. The issuer maintains complete control over which information is shared with which dealers. They can also optimise their funding using the built-in cross-currency pricer, comparing their funding levels to their own and their peers’ levels in the secondary markets.
Joakim Holmstrom, Head of Funding at Municipality Finance, said: “We see a large potential in Origin. It is not only a very useful platform to make the whole MTN issuance process more efficient. In our strategy to diversify and expand our investor base, Origin is a great tool to access a broader range of new Dealers who have access to local pockets of demand.”
The Origin platform is also a workflow tool, helping the issuance process by automating cross-currency calculations, generating runs, and producing termsheets, allowing dealers and issuers to monitor the market and track their inquiries and trades in one centralised place.
Raja Palaniappan, the co-founder of Origin said: “We are thrilled to have such broad-based early support for our platform across the European MTN market, and we are already seeing a healthy pipeline build up for 2017.”
Origin’s launch partners include: BNP Paribas, DekaBank, Bank of America Merrill Lynch, Société Générale Corporate and Investment Banking, Credit Suisse, and Danske Bank on the dealer side, as well as on the issuer side: IFC, Inter-American Development Bank, SEK, Municipality Finance, Nordic Investment Bank, Bladex, NWB Bank, Investec, AKLease, Rabobank, Berlin Hyp, pbb Deutsche Pfandbriefbank, Hitachi Capital UK, Korea Development Bank, and others.
ENDS
For further information:
Origin Markets
Raja Palaniappan, raja.palaniappan@originmarkets.com / +44 (0) 207 993 5375 / +44 (0)7779 209652 and originmarkets.com
CTF Communications
Adrian Flook, aflook@ctfcomms.com / +44 (0) 203 540 6456 / +44 (0)7768 608396
