The Issue Of Preferred Securities In Spain

Law 19/2003, published in the Spanish Official Gazette dated 5^th July 2003, includes in its Third Additional Disposition the normative that, amending Spanish Law 13/1985 on investment coefficients, equity and information obligation of financial intermediaries, rules preferred securities under Spanish legislation.

Below we will describe the main mercantile, regulatory and tax characteristics of preferred securities in Spain introduced by Law 19/2003, establishing a new alternative for obtaining resources which, previously, Spanish companies were forced to obtain through vehicles sited abroad. The new law also enables EU companies to set up vehicles in Spain for the issuance of preferred securities.