SGX and Euroclear Bank to launch Orchid bond structure

Singapore Exchange (SGX), Asia's leading international fixed income marketplace, and Euroclear Bank (Euroclear), the Brussels-based international central securities depositary (ICSD), announced the launch of the Orchid bond structure in Singapore, which combines domestic bond issuance with global distribution channels. 

With the launch of the Orchid bond structure, international investors will be able to purchase bonds issued by Singapore-based issuers directly on SGX's wholly-owned subsidiary, The Central Depository via Euroclear, and will benefit from real-time, multi-currency delivery versus payment settlement with any counterparty within Euroclear's network. SGX and Euroclear will look to extend the offering beyond Singapore to other regional issuers.

SGX is Asia's most global bond listing venue, having listed over 6,600 securities by more than 1,600 issuers from 66 countries with amounts issued totalling US$2.2 trillion in 26 currencies. The addition of the Orchid bond structure allows market participants to utilise SGX as a one-stop issuance, listing and distribution platform for regional issuance.

SGX and Euroclear were both supported by HSBC in its capacity as arranger, custodian bank and paying agent in the setting up of the Orchid bond structure.