Chase to run ADR program for Bank Leumi.

NEW YORK -- Chase Manhattan Bank and Bank Leumi le Israel are planning to set up a program to help Israeli companies issue American depositary receipts and global depositary receipts.

"Israel is fast becoming an attractive market for outside investment, and international investors are choosing ADRs and GDRs as preferred vehicles to access Israel's emerging market," Chase said.

Although several U.S. banks, such as Bank of New York, Citicorp, and J.P. Morgan, have ADR programs for foreign companies, setting up a joint venture with a foreign bank to issue ADRs is rare.

Depositary receipts are U.S. dollar-denominated, negotiable certificates representing shares in a foreign company. Investors stand to profit or lose from share price movements on the foreign company's home stock market as well as from currency fluctuations against the dollar.

For reprint and licensing requests for this article, click here.
MORE FROM AMERICAN BANKER