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Luxembourg's BIL Inks Pact With Leonteq

Tom Burroughes, Group Editor , 3 August 2020

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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. 

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