15th Sep 2008 18:23
15 September 2008
ETFS Commodity Securities Limited - RIS Announcement
Issue of New Prospectus and Other Changes
On Monday 15 September 2008 ETFS Commodity Securities Limited (the "Issuer") published a Prospectus (the "New Prospectus") describing changes made to its programme for the issue of classic and forward commodity securities ("Commodity Securities") since the last prospectus was published on 18 September 2007.
The New Prospectus can be viewed at www.etfsecurities.com/csl and at www.londonstockexchange.com/en-gb/pricesnews/marketnews. However a summary of the changes is provided below:
Amendments to the Programme's Documentation
New Securities
By a Supplemental Trust Instrument dated 15 September 2008 between the Issuer and The Law Debenture Trust Corporation p.l.c. (as trustee on behalf of the holders of Commodity Securities) (the "Supplemental Trust Instrument") certain changes to the conditions of Commodity Securities have been made in order to allow for the issue of new classes of Commodity Securities tracking four new Dow Jones - AIG Commodity IndicesSM.
Other Amendments
Further changes were made to the conditions of the Commodity Securities by the Supplemental Trust Instrument giving the Issuer the power to:
(i) suspend, for a limited period, redemptions of all types of Commodity Securities which are comprised in whole or in part of Micro Securities whose Price has fallen below their Principal Amount; and
(ii) to redeem, compulsorily on two days' notice (instead of the thirty calendar days currently available under Condition 9.1(b)), all or any types of Commodity Securities which are comprised in whole or in part of Micro Securities whose Price has fallen to 2.5 times their Principal Amount.
The changes to the conditions of the Commodity Securities set out above, which are together designed to ensure that the Issuer does not need to redeem Commodity Securities in circumstances where their Price is at risk of falling below their Principal Amount, will come into effect on 16 October 2008.
The new conditions and details of the new classes are set out in full in the New Prospectus.
Background about ETFS Commodity Securities
ETFS Commodity Securities are financial instruments designed to enable investors to gain exposure to a total return from an investment in individual commodities (through Individual Securities) or baskets of commodities (through Index Securities) similar to the returns in investing in futures contracts. Commodity Securities were first listed on the SETSmm platform of London Stock Exchange on 27 September 2006. The Issuer and other subsidiaries of ETF Securities Limited currently have approximately US$5 billion in assets. The Commodity Securities provide investors with an exposure similar to that which an investor could achieve by managing an unleveraged long position in near-term futures contracts. Administration services are provided to ETFS Commodity Securities Limited by ETF Securities Limited whose team also created the world's first exchange traded commodity, Gold Bullion Securities.
For more information:
www.etfsecurities.com
London Representative Office: +44 20 7448 4330
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