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BNY Mellon selected by Covestro for ADR depo bank
10 January 2017
The bank was chosen last week by Brazilian petrochemical company Braskem.
American depositary receipt (ADR)
BNY Mellon has been appointed by Covestro
as the depositary bank for its sponsored American depositary
receipt (ADR) programme, effective 12 January.
The bank will replace an unsponsored
facility run by Citi, which announced the programme in April
2016, for the Germany-headquartered polymer company.
The ADRs will continue to trade on the US
over-the-counter market under the symbol COVTY.
"The US is a crucial strategic market for
Covestro, both operationally as well as in terms of our
investor base," said Frank H. Lutz, CFO of Covestro.
"With the conversion to a sponsored Level
I ADR programme, we aim to facilitate access to the stock for
global investors and further broaden our shareholder base in
the long term."
Covestro is the latest global firm to
convert from an unsponsored to a sponsored depositary receipt
programme. Over the last three years, 21 companies have
replaced their unsponsored depositaries with BNY Mellon.
This appointment follows the news that BNY
Mellon has also been selected by Brazilian petrochemicals firm
Braskem, as the successor for its ADR
programme, reported by Global Investor last week.
Effective 4 January, BNY replaces JPMorgan, which had been
running the programme for just under three and a half
BNY Mellon also became the successor
depositary bank for Credit Suisse ADR programme in