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PREF-X, the digital platform for private debt placement markets

PREF-X, THE DIGITAL PLATFORM FOR PRIVATE DEBT PLACEMENT MARKETS: TECHNICAL SUPPORT FOR THE ISSUANCE OF A 130 MILLION EURO EURO PRIVATE PLACEMENT

After last month’s announcement of a successful capital increase in record time, the fintech PREF-X announced today that they have been the digital support for the implementation of a two-phased Euro PP issuance for a total of 130 million euros in debt instruments on behalf of GL Events.

The French FinTech has secured the sharing of confidential information and its processing as part of standardized debt origination processes, placed with several investors for the management of information flows in the private placement markets.

 

Arranged by two banks, Crédit Agricole CIB and CM-CIC, the private placement linked PREF-X, the borrower and its advisors, the advice of arrangers and dozens of potential investors.

 

Erick ROSTAGNAT, General Finance and Administration Manager for GL Events said: “GL Events is a regular issuer of Euro PP. Thanks to this issuance, we were able to appreciate the efficiency and ergonomics of PREF-X which made it possible to secure and simplify the exchange of information prior to fund raising. This is a highly welcomed innovation.”

 

Vivien LEVY-GARBOUA, Chairman of PREF-X Supervisory Board states that: “The first origination to which PREF-X has lent its technological support is large and has brought together many stakeholders. It demonstrates that we are an effective, accessible, safe, neutral and value-creating solution for all.

 

Marie-Hélène CRETU, PREF-X Executive Chairman, concluded: “For several months, PREF-X has been consistently providing digitalization of information exchanges between issuers of private placements and investors. The use of PREF-X as a support for the origination process of the GL Events private placement confirms the significant added value that the platform offers to market’s participants. PREF-X is clearly positioned as the infrastructure of choice for this market that expects to grow. We will help it, in France and abroad. This is the mission we are assigning ourselves.”

 

About PREF-X:

PREF-X is a French FinTech created in May 2017 by:

 

CoDiese, SAS, a company that assists financial entities in their adaptation to regulatory constraints and advises them in the operational development of innovative solutions.

 

DIIS GROUP, SAS, a company that supports all issuers of obligations, as well as investors, when new issuances of obligations are configured under the EMTN program, Standalones or in Euro Private Placement format. It acts as collateral agent, bondholder and organizer of bondholders’ meetings.

 

Finexpertis Partners, a Spanish corporate investment company that participates in fintech projects linked with its group. The PREF-X platform was developed by MedySIF, one of Finexpertis’ sister companies.

 

Spread Research, SAS, registered as a financial assessment agency within the European Securities and Markets Authority (ESMA) since July 2013, and as ECAI (External Credit Assessment Institution) with the EBA (European Banking Authority) and the European Insurance and Occupational Pensions Authority (EIOPA).

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The online brokers were the first fintech product – even before the word ‘fintech’ acquired the current sense – to cause a disruptive effect on the brokerage service sector during the beginning of the ‘.com’ boom. Traditional brokers suffered an abrupt acceleration in the reduction of their commissions due to the arrival of these new agents, apart from the fact that traditional banks found in this kind of tool a way to prove they were keeping up with the technological revolution without compromising their main activity.

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Fortunately, there is a win-win solution for brokers and their clients. Brokers can offer high quality value-added services that allow clients to have a greater understanding of their market activity and to clearly visualise their actual profitability, automate the protection of their invested capital or calculate, at any given time, the estimated capital gains that their investments should bring. The aim of these services that improve the global service for the client/investment is to ultimately boost transactions. Given the cost structure, the best way to achieve profitability is to help clients to intelligently invest in the stock markets, boosting their activity. What is more, these additional services can attract new clients, since what they offer is a component that will make it stand out from the competition.

The aim of these services that improve the global service for the client/investment is to ultimately boost transactions.

With minimum investments in add-on tools, it is possible to complement an already existing online broker and increase client activity significantly, achieving, in this way, the desired profitability for the online broker.