Nordic ABM is a list of registered bonds for which Oslo Børs determines the rules of the list in consultation with market participants. Nordic ABM is not a regulated market nor Multilateral Trading Facility nor Organized Trading Facility, and is not subject to the provisions of the Securities Trading Act.
The registration process
The formal process for registration is as follows:
- The admission document is submitted to Nordic ABM, normally by the manager of the issue
- Nordic ABM reviews the admission document and provides written feedback of the result of this approval process. The inspection and control of the admission document are deemed to be complete when the document satisfies the requirements, and this process must be completed before the loan can be registered
- Application is made for the loan to be registered on Nordic ABM
- The loan is registered (no earlier than the day after it is subscribed)
- The admisstion document is published at the time of the registration
A new issuer will be required to provide certain items of information additional to those mentioned above before its first loan can be registered.
Terms for registration
The ABM Rules apply to the issuers of interest-bearing instruments on Nordic ABM. A number of conditions must be satisfied before an issue can be registered. These include requirements that the securities must be:
- registered with a central securities depository
- fully paid-up
- freely transferable
- for an issue of at least NOK 2 million
It is not required to prepare financial accounts in accordance with IFRS for issuers with registered bonds on Nordic ABM. Neither is it required to prepare an full EEA prospectus prior to registration. The disclosure requirements and the trading rules will be nearly equal to the rules that apply for the exchange market.
The issuer must produce an admission document prior to applying for registration. The admission document provides the basis for the decision on whether the securities are suitable for registration on Nordic ABM. This evaluation pays particular attention to the presentation of the issuer and the provisions in the loan terms and conditions that are of significance for equal treatment of all bond/certificate holders. The admission document normally consists of a loan description, a loan agreement and in some cases a description of the issuer. The loan description provides information on the loan itself, while the description of the issuer provides information on the borrower. The contents of the two documents are subject to specific requirements. These requirements are set out in Section 2.7.2 of the ABM Rules. The issuer's annual report can be used as the description of the issuer subject to certain minimum requirements being satisfied.
An issue of interest-bearing instruments with an original maturity not exceeding 12 months is termed a certificate loan in the Norwegian market. In order to register an ordinary certificate loan on Nordic ABM, the issuer is normally expected only to prepare a certificate loan agreement and appoint an approved trustee for the loan.
Issuers of bonds and certificates shall pay fees in accordance with the general business terms and the current price list.