What is an American Depository Receipt (ADR)?
An ADR is a negotiable US certificate representing ownership of shares in a non-US corporation. ADRs are quoted and traded in US dollars in the US securities market. Dividends are paid to investors in US dollars. ADRs were specifically designed to facilitate the purchase, holding and sale of non-US securities by US investors, and to provide a corporate finance vehicle for non-US companies.
What are the benefits of ADRs to US investors?
US investors generally prefer to buy ADRs rather than ordinary shares in the issuer’s home market because ADRs trade, clear and settle according to US market conventions. ADRs facilitate diversification into foreign securities. They also allow for easy comparison with securities of similar companies and, if listed, access to price and trading information.
What types of companies issue ADRs?
ADR issuers are typically large multinational corporations. Non-US companies looking to raise capital in the US or increase their base of US investors will issue ADRs.
Is it easy to get information and updates on an ADR company?
Investors receive annual reports and proxy materials in English. ADR issuers are generally accessible through websites in English, and through the main depositary bank websites. US-listed ADRs provide holders with the same level of information as any other US security. As MTN’s ADRs are not listed on a US exchange, MTN does not provide US GAAP financial statements.
Where are MTN ADRs traded?
ADRs are traded over-the-counter. The trading code is MTNOY. The CUSIP number is 62474M108. The ratio between the ordinary share and the ADR is 1:1.
Who is the depositary for ADRs for MTN?
J.P. Morgan Chase Bank N.A. The depositary bank plays a key role in the process of issuance and cancellations of ADRs. It also maintains the ADR holder register and distributes dividends in US dollars. Please go to the J.P. Morgan Chase Bank N.A. for more information.
How are ADR dividends paid and taxed?
A registered holder, whose name appears on the books of the depositary, is considered the owner of record. A beneficial holder’s holdings are registered in the name of a broker, bank or nominee.
How can I find dividend and corporate action information?
Go to the Program Activity section on the J.P. Morgan Chase Bank N.A. ADR profile for MTN: https://adr.com/drprofile/62474M108
How can I buy ADRs via a US broker?
You can buy ADRs through your broker. For general broker inquiries, please contact J.P. Morgan Chase Bank N.A. at +1 212 552 8926 (New York), +852 2800 1857 (Hong Kong), or drx_depo@jpmorgan.com.
How can I convert ordinary shares in MTN into MTN ADRs?
Ask your broker to contact the J.P. Morgan Chase Bank N.A. ADR Settlements & Operations Team at jpm.adr.settlements@jpmorgan.com, or to reach out to General Broker Enquiries at +1 212 552 8926 (New York), +852 2800 1857 (Hong Kong), or drx_depo@jpmorgan.com.
Contact Information
Registered ADR Holders: Computershare Trust Company, N.A.
Tel (US & Canada – toll free): +1 866 723 8257
Tel (International): +1 781 575 2833
Website: www.computershare.com/investor; www.computershare.com/us/contact-us
Mailing Address: P.O. Box 43304, Providence, RI 02940-3304
Brokers & Institutional Investors: U.S.: +1 212 552 8926. Hong Kong: +852 2800 1857. Email: drx_depo@jpmorgan.com