ASIC jump-starts corporate retail bond market and eases
disclosure for convertible notes
ASIC wants to facilitate the establishment of a retail corporate
bond market, by easing prospectus requirements for listed
issuers:
- it proposes simplified prospectuses similar to
transaction-specific prospectuses for corporate bonds; and
- it seeks feedback on whether the simplified prospectuses should
be structured as two-part prospectuses;
It is also proposing to allow cleansing notices to facilitate
the on-sale of securities issued on the conversion of convertible
notes.
Background
ASIC's proposals for bonds need to be seen in the context of
the growing support for the development of a retail corporate bond
market in Australia. ASX would like to quote government bonds as a
precursor to the development of a corporate bond market, while the
National Executive of the Group of 100 has formed a Working Group
to investigate the feasibility of developing a corporate
