LONDON – Amundi Physical Metals plc (GLDA) has announced the issuance of a new tranche of ETC securities under its Precious Metals Collateralized ETC Securities programme. This issue, tranche 644, consists of 196,000 Amundi Physical Gold ETC securities, bringing the total number of ETC securities in the series to 53,467,459. Each ETC security has an initial right to metal of 0.03968904 fine troy ounces as of the subscription trade date.
ETC securities, linked to the price of gold, are designed to offer investors exposure to the metal without the need for physical delivery. The newly issued tranche is scheduled for release on Wednesday, with a long-term planned maturity date set for May 23, 2118.
The issuer, Amundi Physical Metals plc, has confirmed that the ETC Securities are admitted to trading on various regulated markets, including Euronext (EPA:) Paris, Euronext Amsterdam, Deutsche Börse, Borsa Italiana and London Stock Exchange (LON:). In addition, they were admitted to the International Listing System of the Mexican Stock Exchange under private placement exemptions.
Investors are informed that the total expense ratio for ETC securities is 0.12% per annum, which is deducted from the metal rights. The nominal amount is set at USD 5.085, which represents 10% of the issue price per ETC security on the issue date of the series, with a fixed interest amount of USD 0.051.
This release comes with a clear warning that ETC securities are limited recourse obligations backed by underlying gold. In the event of insolvency, ETC securities would rank equally with each other, but only in relation to the insured assets, and not in relation to other assets of the Issuer.
The statement clarifies that these ETC securities do not make the investor the owner of the gold held by the custodian. Redemptions of ETC securities will be settled in cash, reflecting the value of the gold rights associated with each security.
The above information is based on the press release of Amundi Physical Metals plc.
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