Cross-border access, simplified

Increased globalization and investor appetite for diversification offer a unique opportunity for issuers looking to tap a new investor base, expand awareness, or raise capital using DRs. Issuers can have their shares traded over-the-counter or listed on U.S. stock exchanges in the form of American Depositary Receipts or on European exchanges in the form of Global Depositary Receipts.

The DR product is a negotiable security providing investors, brokers and issuers with a more convenient way to invest in the securities of a foreign issuer.

Potential Benefits of DRs include:

• Familiar trade, clearance and settlement procedures
• Quotes and dividend payments in U.S. dollars
• Ability to acquire the underlying securities directly upon cancellation
• Eligible within DTC, Euroclear and Clearstream

While DRs are generally used as a cross-border equity financing structure, the same structuring process can be expanded for debt instruments including Global Depositary Notes representing a sovereign entity’s locally traded debt.