New Global Note structure (NGN)

From 30 June 2006 a legal and holding structure for international debt securities issued in global bearere (but not registered) form throught the International Clearing System Depositories (ICSDs) of Euroclear Bank and Clearstream Banking. The new structure will be mandatory for newly issued international debt securities to be recognised as eligible collateral for the Eurosystem monetary policy and intra-day credit operations. It can co-exist with the Classic Global Note structure serviced by Common Depositaries.

Differences with the "classic" Global Note structure are:
1.the outstanding amount due under an issue of securities will be recorded by the ICSDs and and not on the bearer global note itself; and

2.the role of the common depository is split so that the global note is kept safe until maturity by a common safekeeper (one of the ICSDs) and will be serviced by a common service provider.
Other eligibility criteria for securities to constitute eligible collateral are that the securities must be issued (or guaranteed by entities established in the EEA or in non-EEA G-10 countries and that the securities are denominated in euro.