J.P. Morgan's Efforts to Stabilize CADES Market Prices

J.P. Morgan's Efforts to Stabilize CADES Market Prices

J.P. Morgan SE has taken a proactive approach in the financial market regarding the newly issued fixed rate notes by CADES, which stands for Caisse d'Amortissement de la Dette Sociale. Serving as the Stabilization Coordinator, J.P. Morgan, in collaboration with other Stabilisation Managers, intends to engage in transactions aimed at supporting the price stability of these securities. The planned stabilization activities are anticipated to commence promptly, showcasing the firm's commitment to maintaining market confidence.

Details of CADES Securities Issuance

Recently, CADES issued USD 2 billion in 5-year fixed-rate notes set to mature on January 22, 2030. These notes will carry a coupon rate that is yet to be confirmed. Each note is available in denominations of USD 200,000, with increments of USD 1,000, and they are listed on Euronext-Paris, attracting interest from various investors.

Potential Stabilization Mechanisms

The stabilization actions proposed may include an over-allotment of securities not exceeding 5% of the total nominal amount. These transactions are specifically designed to bolster the market price of these securities, ensuring they remain higher than the levels that may occur in an open market environment. However, it's important to note that while these stabilization efforts are planned, they might not happen as intended. If initiated, these efforts can be halted at any given time but must wrap up either 30 days after the issue date or 60 days following the allotment date.

Compliance with Regulatory Standards

The stabilization methods will comply with relevant regulations, including the Market Abuse Regulation (EU/596/2016) and its associated Commission Delegated Regulations. J.P. Morgan emphasizes the importance of adherence to these regulations in conducting their activities transparently and responsibly.

Investor Target Audience

The offering and sale of these newly issued securities are primarily directed at entities and individuals with considerable investment experience and high net worth in the United Kingdom, as well as qualified investors operating within the European Economic Area under the definitions provided by the Prospectus Directive.

Important Considerations

This content is purely informational and is not intended as an offer to underwrite, subscribe to, or acquire securities in any jurisdiction. It is essential for potential investors to understand these nuances before engaging with the market. The London Stock Exchange (LSEG) has played a pivotal role in disseminating this announcement through its compliant news services.

Frequently Asked Questions

What are CADES securities?

CADES securities are fixed rate notes issued by the Caisse d'Amortissement de la Dette Sociale, aimed at managing social debt effectively.

Who is involved in the stabilization of CADES securities?

J.P. Morgan, acting as the Stabilisation Coordinator, along with other Stabilisation Managers, is involved in maintaining price stability for these securities.

What is the intended use of the USD 2 billion raised by CADES?

The funds raised through the issuance will be utilized for managing the debt related to social services, ensuring financial stability in this sector.

What regulations govern the stabilization efforts?

Stabilization efforts adhere to the Market Abuse Regulation (EU/596/2016) and various Commission Delegated Regulations.

Who can invest in CADES securities?

Investment opportunities are targeted at recognized investors, including high net worth individuals and institutional investors within specified jurisdictions.

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