Admiral Markets AS has started a final effort to buy back its remaining bonds as it prepares to leave the Nasdaq Tallinn Stock Exchange. The move follows the company’s decision to give up its Estonian investment firm license and shift operations elsewhere in Europe.
Final Bond Offer Details
The broker noted on Thursday that it is offering to repurchase up to 8,476 Tier 2 bonds issued in 2017. The offer runs for around a month and is open only to current bondholders.
Admiral Markets has set the price at €101.02 per bond. This includes the €100 nominal value, a €1 premium, and €0.02 in accrued interest. The total nominal value of the remaining bonds is €847,600.
Investors must submit sell orders through their custodians, with the firm noting that it may accept fewer bonds than offered but aims to buy back the full amount.
Continue reading: Admirals Drops Estonia License but Keeps Estonian Clients via Cyprus Entity
The buyback forms part of a wider restructuring. Admiral Markets is also “exploring the possibility” to terminate trading of the Bonds on the Nasdaq Tallinn Stock Exchange after completing the offer. The company cited low trading activity and the small remaining volume as key reasons.
Delisting and Restructuring
The restructuring also includes the surrender of its Estonian license. The financial regulator, Finantsinspektsioon, withdrew the license in April after the company filed an application.
Admiral Markets has shifted its European operations to Admirals Europe, a Cyprus-based entity regulated by the local authority. This change consolidates its regulated business under one jurisdiction.
The company already reduced its bond exposure earlier this year. In April, it repurchased 4,999 bonds from 99 investors at €103.21 per bond. The current offer aims to retire the remaining balance and complete the process.
The firm’s step to give up Estonian license follows its continued effort to reduce the number of jurisdictions where it holds licenses. Admirals sold its Australian unit to offshore broker PU Prime, giving the buyer an Australian Financial Services license. Admirals announced the sale would support profitability and streamline operations.
Admirals Cuts Global Footprint as Losses Widen
Admirals later cancelled its UAE license of its subsidiary after the Financial Services Regulatory Authority approved the request effective last November. The license allowed the firm to deal in investments as principal. The company said the move forms part of a broader strategy to focus on higher-growth regions.
The reduced operations globally have taken a hit on the brokers financials. It posted a net loss of €5.9 million for the first half of last year as trading activity declined across its core European markets. Net trading income dropped to €13.3 million from €22.0 million a year earlier, while operating expenses fell 20% to €18.3 million.
The company recorded 23,190 active clients during the period and resumed onboarding new EU clients after a temporary pause linked to regulatory compliance measures.
This article was written by Jared Kirui at www.financemagnates.com.Retail FXRead More
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