| Thu 26 Sep 2002, 12:21 | | Investec Bank (uk) Limited - First Issuer Of Warra |
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INVESTEC BANK (UK) LIMITED - FIRST ISSUER OF WARRANTS ON IRISH STOCK EXCHANGE
Wednesday 25th September 2002 - Investec Bank (UK) Limited is to enter the
warrant market in Ireland by becoming the first institution to issue retail
covered warrants on the Irish Stock Exchange (ISE).
The new warrants, which will commence trading from mid October 2002, will
initially cover five of the most liquid Irish stocks. Investec will issue both
call and put warrants on these selected stocks.
Investec warrants will allow Irish investors the opportunity to both protect
their share portfolio by means of put warrants, or increase their exposure to
selected stocks via the call warrants. This is the first time the ISE is to
authorise a bank or financial institution to trade warrants on the Irish market.
The warrant product will be available to private and institutional investors.
They can be purchased through Irish Stockbrokers and are traded as listed
securities on the Irish Stock Exchange.
Warrants, which are similar to an option, give investors the right (but not the
obligation) to buy (call warrants) or sell (put warrants) securities at a
predetermined price (strike price) up to a specified date (expiry date). The
return on a covered warrant is linked to the performance of the underlying
share.
Declan Maher, Investec Equity Warrant Desk, commented: "Over the last few years
warrants have become an equity market phenomenon in world markets. Investec,
through the issuance of warrants on the Irish Stock Exchange, offers investors
an opportunity to participate in this exciting market".
Investec, in this pioneering move, will quote prices on both call and put
warrants, creating a market and providing liquidity in the warrants.
Investec warrants are a leveraged share investment. This means that the price
changes of a warrant, in percentage terms, are much greater than the price
changes in the underlying share. Unlike futures or margined trades, the maximum
loss for the investor is limited to the warrant price paid.
Mr Maher said; "Following the initial launch, Investec will consider extending
the warrant offering to underlying shares beyond the current ISE listing."
For further information:
Declan Maher,
Investec Bank (UK) Limited (Irish Branch)
2nd Floor
Block P3
East Point Business Park
Dublin 3.
Tel: 00 353 1 8773201
Regulated by the FSA
Milton Samios,
Investec Bank (UK) Limited
2 Gresham Street
London
EC2V 7QP
Tel: 00 44 207 597 4328
Regulated by the FSA
XX / XX
Edelman PR
Tel: 00 353 1 678 9333
Investec PLC
Geraldine Griffiths
+44 20 7597 4471
Penrose Financial
Andrew Nicolls/Shona Prendergast
+44 20 7786 4888
Covered warrants [taken from ISE press release]
A covered warrant is a securitised derivative product that is issued by a bank
or financial institution. It is listed and traded on a stock exchange but does
not represent an issue of new capital by the issuer of the underlying equity. It
is similar to an option and gives an investor the right (but not the obligation)
to buy or sell securities (of an issuer which is not the warrant issuer), assets
or indices, at a predetermined price (strike price) up to a specified date
(expiry date). The return of a covered warrant is linked to the performance of
the underlying asset. The downside risk for both put and call warrants is
limited to the amount paid for the warrant, including commission and charges. A
warrant holder can either sell the warrant before expiry, exercise the warrant
at the strike price or allow the warrant to lapse. Investec warrants will be
cash settled on exercise.
Notes to Editors:
Investec
Investec is an international specialist banking group that provides a diverse
range of financial products and services to a niche client base Investec has a
Dual Listed Companies structure with listings on the London and Johannesburg
stock exchanges.
Investec has grown to become one of the 25 largest companies listed on the
Johannesburg Stock Exchange and is ranked 191 in the FTSE 250.
The group has operations in 15 countries around the globe.
Investec Bank (UK) Limited
Investec Bank (UK) Limited, in keeping with the Investec group, concentrates its
activities on Investment Banking, Treasury & Specialised Finance, Private
Banking and Property Activities. These units, while enjoying their own unique
pool of expertise, benefit from the considerable resources of the Investec
international network.
Investec has developed an outstanding reputation for customer focus and
responsiveness due to the commitment, expertise and flexibility of its
employees, who strive to deliver an extraordinary service to our select clients.
We use creative thinking, superior technology and continual research to cater
for the individual needs of our clients. We believe in turning the seemingly
impossible into reality. Hardly surprising when our standard is Out of the
Ordinary.
Investec Bank (UK) Ltd. Regulated by the FSA. A member of the London Stock
Exchange A member of the Irish Stock Exchange Registered Office 2 Gresham
Street London EC2V 7QP
Lynette Lambert
Beachhead Media & Investor Relations
tel number: (011) 214 2406
email: lynette@bmsa.co.za
Date: 26/09/2002 10:58:16 AM Produced by the JSE SENS Department
