On Friday, Amundi Physical Metals plc announced the issuance of 400,000 ETC Securities, identified as Tranche 620 under its Secured Precious Metal Linked ETC Securities Programme. This tranche is part of the Amundi Physical Gold ETC, which offers investors exposure to physical gold.
The ETC Securities are linked to the price of gold, allowing investors to gain exposure to the precious metal without the need to take physical delivery. Amundi Physical Metals plc has confirmed that the total number of ETC Securities immediately following this issue will reach 47,737,455. Each security in the new tranche has a metal entitlement of 0.03969609 fine troy ounces as of the subscription trade date.
The issue date for this tranche is set for November 22, 2024, with the scheduled maturity date far in the future on May 23, 2118. This issuance follows the necessary regulatory approvals, with board approval for the issuance of ETC Securities obtained on April 25, 2019.
Amundi Physical Metals plc has made applications for the ETC Securities to be admitted to trading on multiple regulated markets, including Euronext (EPA:) Paris, Euronext Amsterdam, the Deutsche Börse, the Borsa Italiana, and the London Stock Exchange (LON:). Additionally, applications have been made for admission to the International Quotation System of the Mexican Stock Exchange, with potential for listings on additional stock exchanges in the future.
The total net proceeds from the issue are estimated at $41,927,800.00, with related expenses for admission to trading on the relevant Tranche totaling approximately €3,000. The ETC Securities are designed to provide investors with a cost-effective and convenient way to invest in gold, which is reflected in the total expense ratio of 0.12% per annum.
The ISIN for the Amundi Physical Gold ETC is FR0013416716, and the securities carry a nominal amount of USD 5.085, which is 10% of the issue price per ETC Security as at the series issue date. The securities also have a specified interest amount of USD 0.051, equating to 1% of the nominal amount.
Investors seeking to invest in the ETC Securities for gold exposure should note that this product is subject to market conditions and the performance of the gold price. The issuer, Amundi Physical Metals plc, has structured the offer to align with investors’ interest in the gold market, utilizing the proceeds to meet its obligations under the ETC Securities.
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