MTF Evaluation

On 14 May 2024 Triodos Bank announced that based on the evaluation of the tradability of Depository Receipts (DRs) on the Multilateral Trading Facility (MTF), Triodos Bank N.V. (Triodos Bank) has concluded that the trading of DRs on the MTF does not provide the adequately functioning trading solution that DR Holders are looking for. Potential MTF improvements are deemed unlikely to sufficiently resolve the experienced limitations. Consequently, Triodos Bank has decided to start preparing for listing of the DRs on Euronext.

On 20 December 2023, Triodos Bank announced that it had started the MTF evaluation process, which was going to focus on tradability, pricing and liquidity, and operational performance and accessibility of the MTF. Triodos Bank invited three independent third parties Deloitte Financial Advisory B.V. (Deloitte), Oaklins Equity & ECM Advisory B.V. (Oaklins) and Ipsos B.V. (Ipsos) to make analyses and prepare reports for the evaluation. Triodos Bank has considered these reports carefully. The reports mentioned and Triodos Bank’s considerations are all available below:

Why did Triodos evaluate the MTF Captin?

At the end of December 2023, Triodos Bank announced that it would commence the evaluation of the MTF listing. The evaluation focused on tradability, pricing and liquidity, operational performance and accessibility of the MTF, post-MTF listing investor engagement efforts and obtaining DRH’s feedback on their views related to the trading of DRs on the MTF and their first months of experience with the platform. Triodos Bank decided to perform this evaluation after monitoring the MTF from the first trading round and the decision to periodically review and assess the MTF listing.

As part of the evaluation, all DR Holders were invited in January 2024 to participate in an online survey executed by Ipsos, and to perform a qualitative survey based on in-depth interviews.

What has Triodos Bank learned through this evaluation?

The MTF listing has succeeded in restoring tradability on an external trading platform in accordance with market-based pricing.
The MTF has successfully completed weekly auctions since the start of listing.
Price formation of the DRs on the MTF is affected by limited availability of liquidity.
The research observations on accessibility and operational performance confirm that DR Holders have experienced issues with onboarding and interaction with the MTF platform.
The evaluation indicates that a meaningful group of existing and potential new investors have not been able or willing to onboard and trade on an MTF.

What are the next steps?

Triodos Bank will start preparing for the listing of the DRs on Euronext. Preparations will include an Extraordinary General Meeting (EGM) to seek approval from DR Holders for the decision for a listing of the DRs on Euronext. In addition, approval of the relevant regulatory authorities will be sought. In the meantime, Triodos Bank and Captin will strive to further optimise the MTF, as trading will continue there until the listing on Euronext is completed and will work together to prepare for the listing and future trading on Euronext. As further information becomes available including the timing of the EGM we will keep all investors informed via press releases and our website.

MTF Evaluation

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