Plain vanilla listed bond

Financial regulation - public offers - admissions to trading - UK - UK Public Offers and Admissions to Trading Regulations 2024 (POATR).

The UK's Public Offers and Admissions to Trading Regulations (2024) are designed to enable the use of low denomination bonds and facilitate retail inclusion.

In this context, a plain vanilla listed bond is defined as a debt security that:

(1) is admitted to the FCA’s “official list”;

(2) is guaranteed by the issuer’s parent undertaking, which should be an Equity Shares (Commercial Companies) (ESCC) issuer, where the issuer is an ESCC subsidiary;

(3) bears a fixed coupon rate (including zero and stepped coupons) or a floating coupon rate, as long as it is referenced to: the BoE official bank rate or an equivalent central bank rate; a benchmark or index that tracks UK inflation; SONIA or other equivalent risk-free rate in any currency; or EURIBOR (and not subject to a modification such as a cap or floor, unless a zero floor);

(4) is unsubordinated, unsecured and not subject to bail-in; and

(5) is not a convertible or asset-backed security or one that gives rise to a payment or delivery obligation linked to an underlying asset or index (other than those shown above).

(Source - James Leather FCT, The Treasurer, Issue 4, 2025, p30.)

See also

• Admission to trading
• Asset backed securities
• Bailin
• Bank Rate
• BoE
• Cap
• CCI
• COBS
• Convertibles
• Coupon rate
• Debt
• EURIBOR
• Financial Conduct Authority (FCA)
• Floor
• Inclusion
• Low denomination bond (LDB)
• MTF
• Official List
• Plain vanilla
• Public offer
• Regulation
• Retail bond
• Retail inclusion
• Risk-free rates
• Security
• SONIA
• UK Prospectus Regulation
• UK Public Offers and Admissions to Trading Regulations 2024 (POATR)
• Unsecured
• Zero coupon