ZSE said the minimum debt listing requirements' disclosures would help assess various issues, including the type of protection afforded to investors depending on the various types of debt securities.
THE Zimbabwe Stock Exchange (ZSE) has issued a set of debt listing rules for new applications, which it says are aimed at bringing confidence and transparency in the way transactions are handled.
In a final draft, the ZSE said the debt listing requirements would spell out the minimum disclosures to be made when listing debt securities.
The ZSE also said it would encourage issuers of debt making applications for listing to discuss, confidentially, to see if their proposed transactions would meet the requirements before approaching authorities.
"In order for an entity to be approved as a debt sponsor, it must make a written application to the ZSE, setting out its relevant industry knowledge and prior relevant experience. The applicant issuer must appoint a debt sponsor when making an application for listing of debt securities or the registration of a programme memorandum. The debt sponsor must notify the ZSE of its appointment by an applicant issuer. Where there are joint debt sponsors, the applicant issuer must appoint a debt sponsor that will take the lead in the process. The ZSE shall deal with the lead debt sponsor which is appointed in respect of the issue. ," said the ZSE in the guidelines.
An applicant or applicant issuer is an issuer or a new applicant.
A debt sponsor is an entity that is approved as a debt sponsor by the ZSE.
The ZSE said the minimum debt listing requirements' disclosures would help assess various issues, including the type of protection afforded to investors depending on the various types of debt securities.
"The concept of full disclosure will be applied equally to both private and public companies. Where applicant issuers are incorporated in terms of specific enabling legislation, which may have imposed limitations on disclosure, this fact must be disclosed in the placing documents."
"The debt listings requirements reflect, inter alia, the rules and procedures governing new applications and the ongoing obligations of issuers, and are aimed at providing investor confidence via an orderly, secure, efficient and transparent financial market.
"The ZSE believes it is important for the exchange to be in a position to facilitate offerings and listings by continually enhancing its requirements to ensure a high level of investor protection and confidence," noted the bourse.
The requirements list a number of obligations for debt sponsors, such as providing the ZSE with any information the bourse may require for verifications.
Debt sponsors are required to make sure that any announcements will comply with the debt listings requirements, before they can be submitted for consideration.
