Strategy
Luxembourg's BIL Inks Pact With Leonteq
The pact covers manufacturing and distribution of structured investment products.
Swiss-listed structured products firm Leonteq last week announced
that it had forged a new partnership with China-owned
Banque Internationale à Luxembourg.
The pact covers manufacturing and distribution of structured
investment products, Leonteq said.
BIL, which is owned by China’s Legend Holding, will join
Leonteq’s technology platform for fully white-labelled issuers
and use Leonteq’s expertise to create and distribute structured
products. As part of their cooperation, Leonteq will provide BIL
with services along the entire value chain, including
distribution, product structuring and issuance.
The bank will be responsible for distributing its structured
investment products to its own clients, while Leonteq has
received an international distribution mandate giving BIL access
to a broad base of qualified investors across Europe and
Asia.
The first BIL structured investment products are expected to be
available on Leonteq’s platform in the second half of 2020.
BIL, founded in 1856, is present in Luxembourg, Switzerland,
Denmark, the Middle East, and China. The bank has €43.5 billion
in assets under management.
A few days prior to the announcement, Leonteq reported group net
profit of SFr5.5 million ($60.3 million), sliding from SFr30.2
million a year earlier. A net trading result of -SFr107.1 million
was “significantly impacted” by hedging-related losses driven by
the oil price shock and cancellation of dividend payments, and
the increase in hedging-related costs, it said.
