These securities are typically issued on an excluded offer basis (i.e. without a prospectus) to sophisticated/professional investors, pursuant to section 708 of the Corporations Act and are not quoted on ASX. To satisfy regulatory compliance and investor requirements wholesale corporate debt issuers are often required to list their securities on an internationally recognised exchange. ASX has a streamlined and internationally competitive listing process for wholesale debt issuers.
Being listed (but not quoted) on ASX:
- satisfies the 'public offer test' (see section 128F(3) of the Income tax Assessment Act 1936 (Cth) - domestically issued bonds are now marketable overseas, so long as certain conditions are met;
- typically satisfies overseas investors whose mandates require securities to be listed; and
- is a timely and efficient process.