Английский язык. Практический курс для решения бизнес-задач
Шрифт:
11. сompany issued securities used for financing and backed by selected financial assets
12. ownership of a corporation through the purchase of shares
Exercise 4*. Fill in the blanks using terms given below.
Spotlight on American Depository Receipts
Until recently, participation in Russia’s lucrative but…… equity market remained a mystery to the international financial……… open to only the most……. emerging market investors. However, in 1995 the Russian electric……. Mosenergo issued the first Russian……. in conjunction with the Bank of New York, thus beginning a trend which has allowed a number of Russian firms to make their first foray into the American capital markets.
Issuing and Trading ADRs
An American Depository Receipt is issued by an American……. institution, denominated in dollars, and represents one or more shares of a foreign corporate……. which has been deposited with a local……. in the home country of the entity.
In the case of Russia, the ADR is created by the US depository institution and……. to the US purchaser. The…….. proceeds as follows. The purchaser’s broker buys the…….. Russian……. through a licensed Russian broker, and subsequently directs that the stock be deposited with a custodial……. of the ADR issuing bank. The broker…….. the transaction will…….. the USD received from the purchaser into rubles and pay the local broker for the shares. On the day that the shares are……. to the custodian, this institution…….. the depository bank. When notification is received, the ADRs are issued and delivered to the broker initiating the transaction, who in turn delivers the securities to the investor. Thus, one of the depository institution’s most crucial roles is that of stock…….. agent and………
Once an ADR is issued, it can be freely sold to other investors in the US in an…… transaction…… of an ADR works in a fashion similar to the purchase transaction. The owner’s broker may sell the ADR to another US investor in an intra-market transaction, or may sell the shares in Russia in a……. transaction.
Once again going through the local Russian broker, the US broker sells the shares and then…….. the ADRs to the depository bank. The depository institution……. the ADRs and instructs the custodian to deliver the shares held to the local broker who will arrange for the conversion of rubles into dollars to be returned to the ADR…..
Level 1 ADRs
As the quality of…… information disseminated by Russian firms is rudimentary and confusing, the majority of companies issuing ADRs utilize the Level 1 program, which is the simplest method for a foreign company to gain access to the American capital market.
Level 1 ADRs trade……. and consequently the issuing company is…….. from……. with many of the reporting and……… requirements set forth in the 1934 Securities Exchange Act. This exemption allows the foreign issuer to enjoy the benefits of a…… security while continuing to use the current financial reporting process. To issue a Level 1 ADR, a Russian company must do the following:
File its financial statements (utilizing current reporting methods rather than the……. standards) in English with the……., as well as provide information as requested to appropriate Russian…….. authorities.
…… a standard contract with the issuing depository institution enumerating the rights and responsibilities of each party.
File a……… registration statement with the SEC.
Level 2 and 3 ADRs
Level 2 and 3 ADR programs stipulate that a Russian firm should meet additional reporting requirements for…….. on NASDAQ or other……. The Level 2 program envisages registration under the 1934 Securities Exchange Act, whereas the Level 3 program entails a full public…….. with the concomitant reporting requirements, including three years of financial statements according to US GAAP standards and a…….. process similar to that essential for any US…… offering.
Rule 144A Private Placements
Rule 144A allows Russian firms to…… capital via private……. to…….. institutional buyers (QIBs) while avoiding the high costs and extensive disclosure requirements essential for Level 2 and 3 programs. Once these unregistered securities are placed with…… purchasers, they may not be sold to the public for at least two years, although they may be sold to other qualified buyers.
Benefits of ADRs
The issue of American Depository Receipts has a number of advantages for both Russian…… and the investing public. Via an ADR, a Russian company may gain its first introduction to international capital markets while raising public……. of the firm and reaching a much broader range of investors. An ADR issue will signal to the market that a firm actively seeks out and values Western investors, and is willing to work towards meeting international…….. of financial disclosure. Issue of an ADR can also increase……. for a company’s shares in the domestic market, while positively impacting the domestic share price.
Source: Capital Markets Report
Terms:
GAAP, offering, awareness, listing, surrenders, standards, liquidity, due dilligence, convert, Form 6, exempted, volatile, intra-market, qualified, publicly-traded, placements, OTC, community, SEC, holder, sophisticated, utility, depository, entity, custodian, issued, transaction, underlying, securities, agent, initiating, delivered, notifies, transfer, registrar, cancellation, cross-border, cancels, financial, compliance, disclosure, regulatory, execute, exchanges, public, eligible, issuers, raise, ADRs
Exercise 5. Translate into English.
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Не исключено, что через два года акции «Газпрома» можно будет купить в Нью-Йорке. Как стало известно «Ведомостям», монополия думает пройти листинг на NYSE и выпустить ADR второго уровня. Это приблизит «Газпром» к заветной цели – капитализации в $300 млрд, но вынудит быть откровеннее с инвесторами.
В пятницу к берегу американского штата Мэриленд причалил первый танкер с сжиженным газом (liquefied natural gas) «Газпрома». Вместе с газом монополия хочет привести на американский рынок и свои акции. Об этом на пресс-конференции в Нью-Йорке заявил заместитель председателя правления «Газпрома» Александр Медведев. По его словам, «Газпром» хотел бы вывести свои бумаги на Нью-Йоркскую фондовую биржу (NYSE) в течение двух-трех лет, после либерализации рынка ее акций. «Американский финансовый рынок очень привлекателен, – цитируют топ-менеджера информагентства, – здесь самая большая ликвидность, самый разнообразный состав инвесторов».
Компания может пройти листинг на NYSE, а потом выпускать на той же площадке ADR второго уровня, уточнил менеджер «Газпрома». Он говорит, что от идеи выпустить ADR третьего уровня сразу пришлось отказаться – маловероятно, что правительство согласится на дополнительный выпуск акций. По законам США программы второго уровня предполагают включение АDR в листинг одной из ведущих американских бирж – NYSE, NASDAQ, AMEX. Менеджер «Газпрома» полагает, что на NYSE может обращаться 5—10% акций «Газпрома». Сейчас 4,5% акций компании торгуется в виде ADS на Лондонской бирже. Если «Газпром» пройдет процедуру листинга, он станет седьмой по счету российской компанией, бумаги которой можно купить на NYSE. Сейчас это расписки третьего уровня МТС, «Вимм-Билль-Данна», «ВымпелКома» и «Мечела», а также ADR второго уровня «Ростелекома» и «Татнефти».