PhillipCapital issues new asset-backed wine-based token
Yong Hui Ting
PHILLIPCAPITAL has issued a new wine-based token, called the En Primeur Token (EP).
The tokens represent a series of secured notes issued by the brokerage that will be traded on Alta, an exchange licensed by the Monetary Authority of Singapore.
Each asset-back security is linked to a parcel of 36 bottles of 16 wine labels from the 2020 Bordeaux EP vintage collection. The labels include Lafite Rothschild, Haut Brion and Mouton Rothschild.
Investors can opt – upon the wines’ bottling in 2023, or at the maturity of the secured notes in 2026 – to redeem for payment from the sale of wines or physical collection of the wines, said PhillipCapital on Tuesday (Dec 27).
Luke Lim, managing director of Phillip Securities, said the new product is part of the group’s efforts to cater to investors’ interest in “alternative investment vehicles”.
En primeur is the French term for wine futures, a method of buying wine while it is still in the barrel.
“The price of an en primeur wine is expected to be lower than the release price on the market, and acquiring them or wine futures also allows investors to hold highly demanded wines that may potentially be impossible to find when they are released on the market,” said PhillipCapital.
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