Our insight

For many quoted companies, making their shares accessible to investors outside their home market, particularly to investors based in the United States is a key goal. Businesses may wish to raise new capital abroad, diversify their shareholder bases to cover a more international spread, improve their profiles with foreign investors, or use their shares to make acquisitions overseas.

The challenge

Investors often face difficulties in buying shares in foreign companies. The reasons for this are varied, but significant disincentives are created for investors by prohibitions or limitations on buying shares outside their domestic markets and the burden of administering foreign holdings; including the necessity to manage investments in multiple foreign currencies.

The solution

One of the most effective methods for companies to achieve a wider distribution of their shares is through the establishment of a depositary receipt programme. Since the 1920s, depositary receipts have in effect, facilitated the conversion of domestic shares into international shares. In the case of American Depositary Receipts (ADRs), non-US shares have been converted into domestic US securities denominated in US dollars. As a result, many of the main obstacles for overseas investors are removed.

DB Advantage Benefits

Deutsche Bank has a wealth of experience in administering cross-border equity structures such as american and global depositary receipts from issuers around the world. We also offer paying agency, annual general meeting, advisory and shareholder services for companies with registered or bearer shares listed on a German stock exchange.

Deutsche Bank goes much further than providing core operational services. We act as a vital intermediary between the issuing company and its depositary receipts investors in process management and information flow, thereby minimising the administrative burden on the issuing company and ensuring depositary receipt investors receive the most efficient service possible.

Our dedicated issuer management team provide a single point of contact for all programme related issues. The markets distribution desks in London, New York and Hong Kong deliver a timely and responsive service to brokers and investors globally. Transaction Structuring and Management Group cover legal and regulatory issues. Finally a key differentiator is the specialist guidance provided on investor relations, tailored to the specific needs of the issuer.

Features

Sectors:

  • All sectors

Structures:

  • ADRs
  • GDRs

Roles:

  • Custody for domestic shares in the local market
  • Depositary bank for issuing and cancelling DRs
  • Corporate actions for processing dividends, AGM/EGM voting and other distributions
  • Tax reclaim
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