ICMA participates in various discussions between the sell-side and investors on the timeliness and accuracy of disclosure and clarity of covenants.

To reflect our commitment towards these goals, we have published several recommendations concerning availability of offering documentation to investors. These are the ICMA Recommendations No. 1.26 (Including the date of base prospectus in screen announcements), No. 1.27 (Availability of draft offering documentation) and 1.28 (Availability of prospectus) and can be found in Section One of the ICMA Primary Market Handbook (IPMA Handbook).

ICMA published an explanatory note which aims to provide a brief, “non-legal” explanation of the term “senior” and the “negative pledge” covenant, as they are currently used in the terms and conditions of international corporate bond issues. The note, drafted in consultation with the Association of British Insurers (ABI), is intended to provide clarification on the use of these terms and highlight the most common misconceptions about their meaning.

12 October 2006
ICMA explanatory note on use of senior and negative pledge covenant