Amundi Physical Metals plc issues new gold-backed ETC securities

Published 01/16/2025, 06:26 PM
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LONDON - Amundi Physical Metals plc (GLDA) has announced the issuance of 300,000 new ETC Securities, which are part of its Amundi Physical Gold ETC. This addition represents Tranche 646, expanding the total number of ETC Securities following the issue to over 54 million.

The ETC Securities, each initially linked to 0.04 fine troy ounces of gold, provide investors with exposure to the gold price without the need for physical delivery. The securities are designed to track the price performance of gold and are backed by allocated gold held by HSBC Bank plc, the custodian.

The Issue Date for this tranche is set for January 17, 2025, with a Scheduled Maturity Date of May 23, 2118. The securities are subject to a Total (EPA:TTEF) Expense Ratio of 0.12% per annum, which is deducted from the Metal Entitlement associated with each security.

Investors should note that the ETC Securities do not pay periodic interest. However, an interest redemption premium may be included in the Early Redemption Amount or Final Redemption Amount, which may exceed the issue price per ETC Security for the first tranche of the Series.

Applications have been made for the ETC Securities to be admitted to trading on regulated markets including Euronext (EPA:ENX) Paris, Euronext Amsterdam, Deutsche Börse, Borsa Italiana, and the London Stock Exchange (LON:LSEG). They are also admitted to trading on the International Quotation System of the Mexican Stock Exchange under private placement exemptions.

The ETC Securities offer a way to invest in gold with a structure similar to direct gold investment, and the net proceeds from the issue will be used to meet the issuer's obligations under the ETC Securities.

This issuance is based on a press release statement and provides an alternative for investors to gain exposure to the gold market through the securities market. Investors should carefully consider the terms of the ETC Securities and the associated risks, including market volatility and the creditworthiness of transaction parties, before investing.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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