PRESS RELEASE | LEONTEQ LAUNCHES SHARI’A-COMPLIANT OFFERING ON LYNQS

Zurich, 5 November 2024

Leonteq announced today that it has enabled its Shari’a-compliant structured product offering on its digital investing platform, LYNQS. 

Following the opening of its office in Dubai in 2021, and as part of its growth ambition to service the broader Gulf Cooperation Council (GCC) market, Leonteq has expanded its product offering with the launch of Shari’a-compliant trust certificates in 2022. The trust certificates are issued by IBDAA Certificate Issuer Ltd. (IBDAA), a standalone special purpose vehicle company, under the Shari’a Compliant Trust Certificate Issuance and Offering Programme (Programme) with Leonteq Securities AG acting as lead manager and are designed to produce financial returns analogous to those of traditional structured investment products. The Programme has been approved by the Shari’a Supervisory Board of Amanie Advisors Limited which has been appointed to advise IBDAA and Leonteq Securities AG on the Shari’a compliance of the Programme.

As part of Leonteq’s strategy to stay at the forefront of digitalisation and to create innovative digital solutions for its clients, IBDAA has now been enabled as a new issuer on LYNQS for Shari’a-compliant products with a minimum issuance size of USD 50,000. In addition, Leonteq has created a dedicated platform for the Middle East which exclusively offers Shari’a-compliant investment ideas and products issued by IBDAA.

Alessandro Ricci, Head Investment Solutions at Leonteq, stated: “We are very pleased to add IBDAA as a new issuer on our multi-issuer platform. This makes LYNQS the first digital tool globally to offer Shari’a-compliant products with a competitive minimum subscription size. Today we take a further step in advancing our capabilities in Islamic finance to better serve our growing franchise in the Middle East.“

Under the Programme, Leonteq’s platform allows investors to benefit from a short time-to-market and access to a large array of asset classes, currencies and payoffs, including yield enhancement, capital protection and participation.

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LEONTEQ

Leonteq is a Swiss fintech company with a leading marketplace for structured investment solutions. Based on proprietary modern technology, the company offers derivative investment products and services and predominantly covers the capital protection, yield enhancement and participation product categories. Leonteq acts as both a direct issuer of its own products and as a partner to other financial institutions. Leonteq further enables life insurance companies and banks to produce capital-efficient, unit-linked pension products with guarantees. The company has offices and subsidiaries in 13 countries across Europe, the Middle East and Asia. Leonteq AG has a BBB credit rating by Fitch Ratings, was assigned with an AA ESG rating by MSCI and is listed on the SIX Swiss Exchange (SIX: LEON).

Disclaimer

This press release issued by Leonteq AG (the “Company”) serves for information purposes only and does not constitute research. This press release and all materials, documents and information used therein or distributed in the context of this press release do not constitute or form part of and should not be construed as, an offer (public or private) to sell or a solicitation of offers (public or private) to purchase or subscribe for shares or other securities of the Company or any of its affiliates or subsidiaries in any jurisdiction or an inducement to enter into investment activity in any jurisdiction, and may not be used for such purposes. Copies of this press release may not be made available (directly or indirectly) to any person in relation to whom the making available of the press release is restricted or prohibited by law or sent to countries, or distributed in or from countries, to, in or from which this is restricted or prohibited by law.

IBDAA Certificate Issuer Ltd. (“IBDAA”) does not require any licence or authorisation from the Guernsey Financial Services Commission (“GFSC”) in respect of the Trust Certificate Issuance and Offering Programme (the “Programme”). The Programme and the transaction structure relating to the Shari’a compliant trust certificates (the “Products”) has been approved by the Shari'a Supervisory Board (the ‘Shari'a Board’) of Amanie Advisors Limited which has been appointed to advise IBDAA and Leonteq Securities AG on the Shari’a compliance of the Programme under which the Products are issued. However, prospective holders are reminded that, as with any Shari'a views, differences in opinion are possible and there can be no assurance that the issue and trading of the Products will be deemed to be Shari'a compliant by any scholar other than the members of the Shari'a Board. None of IBDAA, Leonteq Securities AG nor any affiliate of Leonteq Securities AG makes any representation or warranty, express or implied, with respect to the fairness, correctness, accuracy, reasonableness or completeness of any determination and/or approval by the Shari’a Board as to the Shari'a compliance of the Products. Prospective holders should not rely on the approval of the Shari’a Board in deciding whether to make an investment in the Products and are invited to obtain their own independent Shari'a advice as to whether the Products meet the prospective holders’ own individual standards of compliance with Shari'a principles. The attention of prospective holders is drawn to the representations, warranties and undertakings that they will be deemed to make with regards to the Shari’a compliance of the Products under the terms and conditions of the Products.

Leonteq (Middle East) Limited (“LMEL”) is regulated by the Dubai Financial Services Authority (“DFSA”) and does not undertake any Financial Services activity in or from the Dubai International Financial Centre (“DIFC”), including making arrangements for the subscription of Shari’a-compliant products, in a manner that purports to be in compliance with the Shari’a. Accordingly, LMEL does not operate an Islamic window in or from the DIFC and does not have an Islamic Endorsement on its DFSA licence. These arrangements are identical in nature to the arrangements LMEL makes in respect of conventional financial products. Save for the fact that LMEL is making arrangements with respect to the Products that are marketed as Shari’a compliant, LMEL does not purport to undertake any of its Financial Services activities in a manner that is Shari’a compliant.

This press release may contain specific forward-looking statements, e.g. statements including terms like “believe”, “assume”, “expect“, "target" “forecast“, “project“, “may“, “could“, “might“, “will“ or similar expressions. Such forward-looking statements are subject to known and unknown risks, uncertainties and other factors which may result in a substantial divergence between the actual results, financial situation, development or performance of the Company or any of its affiliates or subsidiaries and those explicitly or implicitly presumed in these statements. These factors include but are not limited to: (1) general market, macroeconomic, governmental and regulatory trends, (2) movements in securities markets, exchange rates and interest rates and (3) other risks and uncertainties inherent in our business. Against the background of these uncertainties, you should not rely on forward-looking statements. Neither the Company nor any of its affiliates or subsidiaries or their respective bodies, executives, employees and advisers assume any responsibility to prepare or disseminate any supplement, amendment, update or revision to any of the information, opinions or forward-looking statements contained in this press release or to adapt them to any change in events, conditions or circumstances, except as required by applicable law or regulation.