LONDON – Amundi Physical Metals plc has announced the issuance of a new tranche for its gold-backed exchange-traded commodity (ETC), marking the 632nd tranche of the Amundi Physical Gold ETC. The issue consists of 25,000 ETC Securities, which are scheduled to mature on May 23, 2118.
The ETC Securities, each initially representing 0.04 fine troy ounces of gold, provide investors with exposure to gold prices without the need to physically hold the metal. The Metal Entitlement, which determines the amount of gold each security represents, will decrease over time at a rate specified by the Total (EPA:) Expense Ratio, currently set at 0.12% per annum.
The newly issued ETC Securities are part of a broader program by Amundi Physical Metals plc to offer products linked to the price of precious metals. The issuance follows regulatory approval and is set to be listed and admitted to trading on several prominent exchanges, including Euronext (EPA:) Paris, Euronext Amsterdam, the Deutsche Börse, the Borsa Italiana, and the London Stock Exchange (LON:). The securities will also be traded on the International Quotation System of the Mexican Stock Exchange.
Investors interested in the ETC Securities should be aware that they are secured, limited recourse obligations of the issuer, with a nominal amount of USD 5.085 each. Payments to investors are backed by the gold held by the issuer and are subject to the risks associated with fluctuations in the gold market.
The issuer, Amundi Physical Metals plc, is a special purpose vehicle with no significant assets other than its share capital and the assets linked to the ETC Securities. The company’s obligations under the ETC Securities are secured by the gold held to cover the Metal Entitlement of the securities.
This issuance is based on a press release statement and aims to provide investors with an alternative means of gaining exposure to gold market movements. It is important to note that the value of the ETC Securities could be affected by market perception, the creditworthiness of transaction parties, and the liquidity of the securities in the secondary market. Potential investors should carefully consider the ETC Securities’ structure and market risks before investing.
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