Whilst Avenir may be best known as an equity registrar, we also undertake a significant volume of work in debt markets. Indeed, our Irish operating division is the largest domestic CSD debt securities registrar in the country, whilst we also have a major operation for UK-based issuers, too. And whilst we may finally be seeing the early signs of a thaw for the IPO market – which has appeared somewhat frozen for the last three years – debt issuance can provide an alternative and highly flexible route to capital for many companies. We spoke to John Ferguson, Chairman of Audacia Capital (Ireland) PLC, one of our debt securities clients, to get his view on why Avenir Registrars excels in this field.
Q: What stands out to you about the Avenir proposition?
A: We have had a close relationship with Avenir since 2018 and what impresses us most is the client centric approach that Avenir has. The Team are knowledgeable and professional but also have the can-do approach and are willing to offer help, think outside the box and genuinely “assist” – something that is rare to find these days.
Q: What one key point do equity issuers overlook when it comes to debt markets?
A: We found with previous Registrar service providers that they tried to operate the Debt Issuances in the same way as the Equity Issuance and could only operate one dimensionally. With Avenir, Hardeep and his team operate a very tailored approach and the service we receive is bespoke to our needs.
Q: You mentioned Avenir keeping abreast of current trends. Are there any notable innovations?
A: Following BREXIT, Avenir were ahead of the curve when it came to migrating to Euroclear and made what could have been difficult very smooth through their use of technology and innovation. More recently the changes to the laws surrounding CSDR were conveyed to us in very understandable language, and Avenir have shown real innovation in delivery of a Digitised platform where Noteholders have access to all their information, and dematerialised contracts. The ability to switch between a direct registration system record and Euroclear, and settle outside of Euroclear is extremely attractive and commercially beneficial to us and our clients.
Q: Debt issuance has remained active in recent years as equity markets have stagnated. Will this pattern now reverse?
A: We believe there is always a place for Debt Securities. Economies operate and grow on Debt, almost every business & government use debt on a daily basis, and with interest rates going back down savers will turn again to good quality corporate debt instruments to get yield. The benefits to most businesses of using debt versus equity or bank loans are numerous – non dilution of shareholding, less restrictions on use of funds, in many cases the interest is tax deductible, and showing as an asset rather than a liability on a balance sheet are just a few. So we expect Debt Issuance to remain buoyant.
An amended version of this article originally appeared in the September 2024 version of AIM Journal. You can download a printable version here.
About Audacia Capital
Audacia Capital is an issuer of Corporate Bonds. A BBB rated Issuer listed on Euronext Dublin they list bonds for businesses of all sizes. Bonds can be an ideal solution for Businesses looking to acquire funding without giving away equity. The funding can be for general growth, or to fund specific projects. Audacia are the Issuer only and have no involvement in the investment management, promotion or distribution of the bonds. Audacia manages the whole bond mechanism including trades and coupons through a series of relationships with professional services providers, including Avenir. https://audaciaplc.com/