Click here to download the guidelines.
AFME’s High Yield Division has today published its most comprehensive set of industry-wide Guidelines for the European High Yield Primary Bond Market. The Guidelines are intended to provide guidance for issuers and AFME members when leading or otherwise participating in offerings of non-investment grade notes, known as “high yield bonds”.
The Guidelines were put together by AFME’s High Yield Division members in a wider effort to maintain and improve business practices in the European high yield market. The Guidelines provide a helpful overview of the high yield issuance process for first time or potential issuers (and other interested parties). Where appropriate, other elements of the Guidelines reflect suggested best practice for market participants and also provide forms of certain standardised documents for use in high yield offerings.
Gary Simmons, Managing Director of AFME’s High Yield Division, said: “We believe that these comprehensive guidelines will be helpful to the European high yield industry, both as suggested procedures for conducting high yield transactions, and also as an explanatory guide for parties that are not necessarily familiar with the European high yield market and how it works. This is another example of AFME’s efforts to facilitate more efficient and effective capital markets across Europe."
Youssef Khlat, Global Head of High-Yield Capital Markets, Crédit Agricole and Chair of the AFME High Yield Board, said: “The AFME European High Yield Guidelines are another important step in the industry’s efforts to come together and agree on proper practices and procedures. While it’s important that parties retain some flexibility to tailor high yield transactions to specific situations, I believe that the guidelines can provide a valuable basic framework for the industry.”
Michael Dakin, Partner at Clifford Chance and Vice-Chairman of the AFME High Yield Board, said: “"On behalf of the AFME High Yield Division Board of Directors, I would like to thank those individuals from all across our industry who invested significant time in updating and preparing the European High Yield Market Practice Guidelines which were published today. Their efforts highlight the collaborative ethos that the Division has been so keenly focussed on fostering in our market and reflects the desire of the European High Yield market, from the sell-side to the buy-side and across other market participants, to work efficiently and effectively."
Tanneguy de Carné, Global Head High Yield Capital Markets at Societe Generale CIB, and Vice-Chairman of the AFME High Yield Division Board, said: "Our European high yield bond market has grown tremendously over the past ten years, these guidelines are helpful recommendations to maintain the highest standards and to continue to welcome new participants and keep up with the evolving regulatory environment."