Debt Capital Markets Update - London Stock ExchangeBarclays Bank UK 15/5/2019 1,250 5 Financials...
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Debt Capital Markets Update London Stock Exchange plc Q2 2019
Transcript of Debt Capital Markets Update - London Stock ExchangeBarclays Bank UK 15/5/2019 1,250 5 Financials...
Debt Capital Markets Update
London Stock Exchange plc
Q2 2019
Contents
1. Trends in Global Debt Capital Markets
2. Key DCM transactions listed in London
3. Focus on…
❖ Prospectus Directive (PDIII)
❖ Sovereigns, Supranationals, Green and
Sustainability
❖ Where Can You Find Us… Q3 and Q4
❖ Your LSEG team
Trends in Global Debt Capital
Markets: Q2 2019
4
Global Macro DynamicsIn Q2 2019, Global Debt Capital Markets largely followed trends set in Q1
The US Treasury curve has shifted downwards, as central banks turn
dovish and markets price in the expectations of rate cut(s)
Key Events Calendar: Aug to Oct 2019
Date Event
1 Aug Interest Rate
2 Aug Unemployment
8 Aug Export/Import
13 Aug Unemployment
14 Aug Industrial
6 Sep Unemployment
12 Sep CPI
12 Sep Monetary Policy
Date Event
19 Sep Interest Rate
14 Oct Export/Import
15 Oct CPI
16 Oct CPI
18 Oct Industrial
24 Oct Monetary Policy
30 Oct FOMC
31 Oct GDP
Global DCM issuance down 14% 1H19 vs 1H18 by volumeAnnual Supply by Quarter
Q2 global issuance has been weaker vs Q2 18 outside AsiaComparison of Q2 Supply
Source: Dealogic, July 2019
3.02 3.20 3.16 2.80
3.15 3.03 2.962.46
0
2
4
6
8
10
12
2016 2017 2018 2019
Vo
lum
e (
$ t
rillio
n)
Q1 Q2 Q3 Q4
1.461.34 1.29
0.98
0.840.85 0.84
0.70
0.40 0.39 0.40
0.40
0.360.37 0.33
0.31
0.04 0.03 0.05
0.03
0.05 0.05 0.04
0.04
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
2016Q2 2017Q2 2018Q2 2019Q2
Vo
lum
e (
$ t
rillio
n)
North America Europe Asia Pacific Japan MEA Latam & Carribean
1.5
1.7
1.9
2.1
2.3
2.5
2.7
2.9
3.1
1M 2M 3M 6M 1Y 2Y 3Y 5Y 7Y 10Y 30Y
Yie
ld %
Yield @ 31st Dec 18 Yield @ 31st Mar 19 Yield @ 30th Jun 19
5
Q2 2019 Debt Listings By Exchange
— 217 bonds were issued on London Stock Exchange during Q2 2019; $113bn in debt capital raised. 120 were syndicated
deals raising $100bn
1 Bloomberg, as of 30th June, 2019
2 Dealogic, as of 30th June, 2019
Note: Based on individual tranches issued. Duplicates for 144A and RegS are consolidated. Structured Products are excluded
London Stock Exchange bonds: 2015 to 2019YTD1 Bonds/ Capital Raised across select exchanges Q2 18 vs. Q2 192
897
990
902
1,068
466
0
200
400
600
800
1,000
1,200
2015 2016 2017 2018 2019YTD
No
. B
on
ds
Is
su
ed
535
224
525
139
500
217
326
153
0
100
200
300
400
500
600
0
50
100
150
200
250
LUX LSE DUB SGX
No
. O
f B
on
ds
Cap
ita
l R
ais
ed
($
bn
)
Captail Raised ($bn) 2Q18 2Q19
6
Global issuers pick London for first-time issuances and
products in H1 2019
Source: Dealogic as on 30th June 2019
*Includes tranches of bond transactions from from debut issuers
Selected Debut IssuersSelected Debut Products
4
7
14
0
2
4
6
8
10
12
14
H1 2019
Debut Issuances H1 2019*
Dublin Luxembourg LSE
20
34
51
0
10
20
30
40
50
H1 2019
Debut Issuances and Debut Products H1 2019*
Dublin Luxembourg LSE
Chile’s inaugural
green bonds
($1.42bn, €861mn)
June 2019
ISM
Co-Operative Group’s
debut £300mn
sustainability bond
April 2019
Main Market
Hong Kong’s first
green bond raising
$1bn
May 2019
Main Market
Debut £1bn Sonia-
Linked Bond
June 2019
Main Market
Debut £350mn
sustainability bond
April 2019
Main Market
Debut £600mn Sonia-
Linked Bond
April 2019
Main Market
Uzbekistan’s debut
$1bn international
sovereign bond
Feb 2019
Main Market
AIIB’s debut $2.5bn
global bond
May 2019
Main Market
Saudi Aramco’s debut
$12bn international
bond
April 2019
Main Market
KIFB’s debut INR
21.5bn Masala bond
April 2019
ISM
Inaugural $325mn HY
bond from ADES
April 2019
ISM
Home Group’s debut
£350mn bond
March 2019
Main Market
7
DCM Highlights: Q2 2019
8
EUR 500m, 0.25%, 5Y
Green Bond
May 2019
Main Market
EUR 650m, 0.00%, 2Y
EUR 500m, 0.25%, 5Y
April 2019
Main Market
GBP 400m, 2.50%, 6Y
May 2019
Main Market
EUR 1.0bn, 0.38%, 5Y
May 2019
Main Market
EUR 1.75bn, 0.00%, 5Y
EUR 1.5bn, 0.38%, 5Y
April 2019
Main Market
GBP 1.25bn, 1.24% 5Y
May 2019
Main Market
EUR 700m, 1.00% 8Y
EUR 600m, 1.63%, 12Y
May 2019
Main Market
EUR 1.0bn, 1.63%, 12Y
EUR 750m, 2.50%, 20Y
May 2019
Main Market
CNY 1.0bn, 3.23%, 3Y
Dim Sum Bond
May 2019
Main Market
EUR 600m, 0.13%, 5Y
GBP 500m, 1.75, 8Y
April 2019
ISM
GBP 600mn, 1.33%, 4Y
SONIA Linked
April 2019
Main Market
USD 400m, 5.95%, 10Y
May 2019
Main Market
GBP 1bn, 1.18%, 3Y
SONIA Linked
June 2019
Main Market
Corp
ora
tes +
FIG
S
overe
igns &
Supra
nationals
Gre
en B
onds &
SO
NIA
GBP 300m, 5.13%, 5Y
Green Bond
May 2019
Main Market
USD 1.4bn, 3.50%, 31Y
Green Bond
June 2019
ISM
EUR 1.0bn, 0.38% 10Y
April 2019
Main Market
EUR 1.25bn, 0.81%, 7Y
EUR 1.25bn, 1.38%, 11Y
May 2019
Main Market
EUR 750m, 0.90%, 8Y
Green Bond
May 2019
Main Market
USD 1.0bn, 2.50%, 5Y
Green Bond
May 2019
Main market
USD 1.5bn, 7.55%, 11Y
USD 500mn, 6.35%, 5Y
June 2019
ISM
EUR 1.25bn, 0.38% 7Y
EUR 110m, 1.25%, 20Y
April 2019
Main Market
EUR 1.1bn, 1.23%, 12Y
EUR 1.1bn, 0.83%, 9Y
May 2019
Main Market
GBP 350m, 2.75%, 22Y
Green Bond
April 2019
Main Market
EUR 1.25bn, 6.38%, 12Y
April 2019
Main Market
USD 2.1bn, 2.25%, 10Y
Supranational
June 2019
Main Market
USD 1.5bn, 2.84%, 5Y
Supranational
April 2019
Main Market
GBP 1.25bn, 1.24%, 5Y
SONIA Linked
May 2019
Main Market
USD 2.5bn, 2.25%, 5Y
Supranational
May 2019
Main Market
Key Q2 IssuancesA diverse range of issuers and products
99
Kenya
This is the second Kenyan
international bond transaction to list
on London Stock Exchange since
2018.
May 2019
Sovereign TransactionsQ2 saw key issuances from Africa, Asia, Europe and South America
Egypt
The sovereign returned to market
once again this year raising EUR2bn.
Initial price guidance for the six year
tranche was 5.125% and 6.875% for
the 12 year before launching at
4.75% and 6.375% respectively.
April 2019
Hong Kong
May 2019
Cyprus
Cyprus took advantage of the interest
rates environment by issuing a Euro
denominated bond with 5 year and 30
year tranches, the later of which
being the longest bond sold by the
sovereign.
May 2019
Hong Long issued its first
international Green bond, joining a
growing number of Asian sovereigns
that are accessing sustainable
financing to fund projects to protect
the environment.
Serbia
Tapped the markets for the first time
in 6 years, This issuance was
Serbia’s first EUR dominated bond.
June 2019
Iceland
“This issue is a confirmation on the
recognition and trust of the strides
Iceland… Treasury has never issued
at more favourable rates.“
Bjarni Benediktsson, Minister of Finance
June 2019
Sri Lanka
June 2019
Chile
Chile became the first American
sovereign to issue a Green bond and
the second sovereign issuer after the
Netherlands to receive certification
from the Climate Bonds Initiative
June 2019
Following its successful trade in
March, Sri Lanka returned to market
once again raising USD2bn through a
dual tranche offering
EUR750m (4.750%, 6yr)
EUR1.25bn (6.375%, 12yr)
EUR500m (0.625%, 5.5yrs)
EUR750m (2.750%, 30yrs)USD900m (7.000%, 8yrs)
USD1,200m (8.000%, 13yrs)USD1,000m (2.500%, 5yr)
EUR500m (0.100%, 5yrs)EUR861m (0.832%, 11yrs)
USD1,400m (3.500%, 31yrs)EUR1,000m (1.500%, 10yr)
USD500m (6.350%, 5yrs)
USD1,500m (7.550%, 11yrs)
1010
SONIA-linked Floaters Continue to GrowNon-UK banks have begun to raise funds through SONIA issuances
SONIA Bond Issuance on LSE
Source: Bloomberg, Bank of England, July 2019
Data includes active and matured bonds
All duplicate bonds are consolidated
Capital Raised
on LSE plc
£17.5bn
79% of which
has been raised
in 2019Issuer Name Issue Date Amount Issued (£m) Tenor Industry
Toronto-Dominion Bank 24/6/2019 1,000 3 Financials
Lloyds Bank 16/5/2019 1,250 5 Financials
Barclays Bank UK 15/5/2019 500 4 Financials
Barclays Bank UK 15/5/2019 1,250 5 Financials
Royal Bank of Canada 25/4/2019 300 1 Financials
Leeds Building Society 9/4/2019 600 4 Financials
Virgin Money 28/3/2019 500 5 Financials
Skipton Building Society 27/3/2019 600 5 Financials
National Westminster Bank 22/3/2019 750 4 Financials
Coventry Building Society 19/3/2019 100 5 Financials
EBRD 28/2/2019 950 5 Supranational
TSB Bank /United Kingdom 15/2/2019 750 5 Financials
Santander UK 12/2/2019 1,000 5 Financials
Australia & New Zealand Banking 24/1/2019 750 3 Financials
Royal Bank of Canada 24/1/2019 400 1 Financials
EBRD 18/1/2019 550 3 Supranational
International Finance Corp 18/1/2019 500 3 Supranational
Commonwealth Bank of Australia 17/1/2019 260 1 Financials
Lloyds Bank 14/1/2019 750 3 Financials
Nationwide Building Society 10/1/2019 1,000 5 Financials
First covered SONIA
issuance, £600m (4Y)
First covered SONIA
issuance, £1,250m (5Y)
First covered SONIA
issuance, £1,000m (3Y)
17
Issuers
with Barclays
raising £1.75bn
from 2 issuances
in Q2 2019
0
1
2
3
4
5
6
7
8
0
0.5
1
1.5
2
2.5
3
3.5
4
4.5
Sept Oct Nov Dec Jan Feb Mar Apr May June
2018 2019
No
. o
f D
eals
To
ta C
ap
ital R
ais
ed
(£b
n)
Tota Capital Raised ($bn) No. of Deals
64%
With 60% of
issuances by
volume in
London
Of total capital
raised is on LSE
plc
11
DCM Focus: Green and
Sustainable Finance
1212
Green & Sustainable TransactionsQ2 saw a number of inaugural green issuances including Chile and Hong Kong
RBC
While RBC is a leading
underwriter of Green Bonds
with best-in-class execution
capabilities across multiple
currencies and geographies,
this is the first issuance of a
Green Bond by RBC
“We are proud to finance environmentally responsible businesses and projects that promote the transition to a more efficient and sustainable lower-carbon economy”
Patti Shugart, Managing Director and Global Head, RBC
April 2019
EUR500m (0.250%, 5yrs)
YorkshireWater
Yorkshire Water lists its first
sustainability bond on London
Stock Exchange’s dedicated
Green Bond Segment
“Investors have responded very positively to our sustainable finance framework and the success of this issue confirms that we've taken the right approach.
Liz Barber, Director of Finance and Regulation at YW
April 2019
GBP500 (2.750%, 22yrs)
Co-Op Group
The bond is classified as
“sustainable”, meaning it
meets the UN’s Sustainable
Development Goals and was
the first Non IG sustainability
bond issued out of the UK
“The popularity of this bond
demonstrates confidence in the
Co-op’s growth strategy and in
particular how we’ve placed
sustainability at the heart of our
future plans”
Steve Murrells, CEO, Co-Op
May 2019
GBP300m (5.130%, 5yrs)
Akademiska
As part of the company’s
financial sustainability efforts,
Akademiska Hus issued its
first dual tranche green bond
with a maturity of 5 years
“It is rewarding to note substantial interest in the capital market for green investments in projects that will make the country’s campuses even more sustainable”
Kerstin Lindberg Göransson, President, Akademiska
May 2019
SEK1,000m (0.270%, 5yrs)
Source: London Stock Exchange, Bloomberg, July 2019
SCB
Their first, emerging markets
focused sustainability bond.
Proceeds of the bond will be
used to provide finance
aligned with the UN
Sustainable Development
Goals
This transaction is an important first step in an intended programme of Green, Social and Sustainability Bond issuance to support our Sustainable Finance strategy”
Daniel Hanna, Global Head, Sustainable Finance, SCB
June 2019
EUR500m (0.900%, 8yrs)
114Active green bonds are
listed in London
$36bnTotal money raised from
green issuances
13Currencies
44Issuers
9Debut issuers in H1 2019
13
Issuance Details
Country Chile
Rating
(S/M/F)A+ / A1 / A
Sector Sovereign
Market ISM
Transaction Details
Pricing
Date17 June 2019 25 June 2019
Issue Size USD1.4bn EUR861
Coupon 3.500% 0.832%
Maturity 31 Years 11 Years
Source: London Stock Exchange, Bloomberg, June 2019
Chile Launches America’s First Sovereign Green Bond
⎯ Chile is hosting the 25th annual UN Climate
Change Conference of the Parties - "COP25" in
December 2019.
⎯ As part of its national policy goals on climate
change and the environment, the Government
of Chile took a leading role in climate finance by
being the first country in South America to issue
a sovereign green bond.
⎯ The Government prepared its Green Bond
Framework in conjunction with the Inter
American Development Bank ("IADB").
⎯ The first green bond was issued in June 2019 and was priced at 95bp over US Treasuries, which is the
lowest yield ever achieved for Chile 30 year debt. The issuance attracted interest from a larger number
of Europe based investors as well as 40 ESG specialist investors
⎯ The government will use $523 million from the bond issue to fund renewable energy projects including
solar initiatives, infrastructure for electrified transport such as trains and buses, water management
enterprises and eco-friendly buildings.
⎯ Chile’s minster of finance, Felipe Larraín, said the bonds were one of a number of fiscal measures
intended to foster environmentally-friendly development in the country.
⎯ Chile became the second sovereign issuer after the Netherlands to receive certification from the Climate
Bonds Initiative
⎯ "We are proud of being the first sovereign to issue (a Green bond) in the American continent - the
northern and southern hemisphere" said Andres Perez, Chilean Head of International Finance
Chile Becomes first OECD sovereign to list on ISM as an Exempt Issuer
14
HKSAR Government’s Inaugural Green Bond Offering
Source: London Stock Exchange, Bloomberg, Company Website May 2019
Country Details
Country Hong Kong
Rating Aa2/AA+/AA+
Sector Sovereigns
Market Main Market
Transaction Details
Issue Date 29 May 2019
Issue Size $1 billion
Coupon 2.5%
Maturity 5 years
Geographical Distribution
Asia 50%
Europe 27%
US 23%
Distribution by Investor
Sovereign Wealth Funds/Central
banks/SSAs41%
Fund Managers/Insurers/ Private
Banks30%
Banks 29
“We are pleased to see such strong demand for the
HKSAR Government’s inaugural Green Bond. The
favourable response from global investors indicates not
only their recognition of Hong Kong’s credit strength,
but also their support of Hong Kong’s determination
and efforts in promoting sustainable development and
combatting climate change.”
Financial Secretary of Hong Kong, Mr. Paul Chan
⎯ The Government of the Hong Kong Special Administrative Region (HKSAR) of the People’s Republic of
China issued its first international Green bond, joining a growing number of Asian sovereigns that are
accessing sustainable financing to fund projects to protect the environment.
⎯ The green bond raised $1 billion with an annual yield of 2.55% as it listed on the London Stock
Exchange’s Main Market.
⎯ The proceeds will be used to support Hong Kong’s contribution under the Paris Agreement, with a
focus on important projects in water and wastewater management, waste management and resource
recovery, green buildings and energy efficiency and conservation.
⎯ Orders exceeded US$4bn from over 100 accounts.
⎯ Bookrunners on the bond offering were Credit Agricole CIB and HSBC.
Debt issuance story
Hong KongLaunched the first green sovereign bonds from Greater China on London Stock Exchange
15
DCM Focus: Supranationals
16
Company profile
▪ The Asian Infrastructure Investment Bank (AIIB)
is a multilateral development bank that aims to
support the building of infrastructure in the Asia-
Pacific region.
▪ Headquartered in Beijing, AIIB began operations
in January 2016 and have now grown to 97
approved members worldwide.
▪ By investing in sustainable infrastructure and
other productive sectors in Asia and beyond, AIIB
aims to better connect people, services and
markets that over time will impact the lives of
billions and build a better future.
Debt issuance story
▪ AIIB priced its first ever $2.5 billion 5 year debut
global bond, listed on London Stock Exchange.
▪ Proceeds from the bond will be used to develop
debt capital markets for infrastructure; enhance
infrastructure as an asset class; and promote
Environmental, Social and Governance (ESG)
investment principles in Emerging Asia.
▪ The bond attracted orders of over 4.4.bn from over
90 investors.
▪ Bookrunners on the bond offering were Bank of
China, Credit Agricole CIB, Goldman Sachs
International, and TD Securities.
Asian Infrastructure Investment Bank sole lists its first global bond on London Stock Exchange
Source: London Stock Exchange, Bloomberg, Company Website May 2019
Country Details
CompanyAsian Infrastructure
Investment Bank
Rating Aaa/AAA/AAA
Sector Supranationals
Market Main Market
Transaction Details
Issue Date 17 May 2019
Issue Size $2.5 billion
Coupon 2.25%
Maturity 5 years
Geographical Distribution
Asia 49%
EMEA 35%
Americas 16%
Distribution by Investor
Central Banks/Official Institutions 67%
Banks 25%
Fund Manager 5%
Insurance / Pension Funds 2%
Other 1%
“Increased multilateralism through cooperation,
connectivity and investment in sustainable infrastructure is
integral to all our futures. The AIIB has already grown to
97 members since we began operations in 2016 and I’m
delighted to mark the occasion of our debut bond in the
UK – a founding member.
Jin Liqun, President, AIIB
AIIBInaugural global bond priced at a spread of 6 bps to US Treasuries
1717
651Active bonds
listed on LSE
$165bnRaised
28Currencies
Source: London Stock Exchange, Bloomberg, Dealogic, July 2019
Supranational IssuersA range of issuers and innovative products
Nov 2014First Masala
INR10bn, 10yr
Oct 2018First Komodo
IDR2tn, 5yr
June 2018First Samarkand
UZS160bn, 2yr
May 2019First Global
USD2.5bn, 5yr
Jan 2019First Sonia Linked
GBP550m, 3yr
Dec 2018First Green
EUR500m, 5yr
Sep 2013First Green
SEK500m, 5yr
Aug 2015First EUR Sukuk
EUR650m, 5yr
Dec 2012First RMB
RMB600m, 3yr
18
DCM Focus: International
Securities Market (ISM) and
PDIII
1919
84 bonds
listed on London’s
International
Securities Market
(ISM)
16 countries
Diverse global
reach
£23.7 billion
Money raised on
International
Securities Market
37 issuers
Sovereigns and
corporates
ISM continues to growDeals across sectors, geographies and IG/HY (as of 30 June)
Source: London Stock Exchange Data, FactSet, July 2019
*Sector and region graphs are based on the capital raised
Across multiple continents (£bn)* ISM Issuance
— £23.7 billion has been raised on ISM since
its launch, 42% of which was raised in 2019
— Q2 2019 saw £4.0 billion raised, 2.1x more
than 2Q18
— ISM is home to 19 programmes from
issuers from across the world, including 3
sovereigns – Chile, Sri Lanka and Fiji
0.4
13.4
7.9
1.8
0.2
Africa APAC Europe North America ME
0
2
4
6
8
10
12
14
16
0
1
2
3
4
5
6
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
2017 2018 2019
No
. o
f D
eals
To
tal
Cap
ital R
ais
ed
(£b
n)
Total Capital Raised (£bn) No. of Deals
— OECD member states are classified as
Exempt issuer for the purpose of admitting
securities to trading on ISM. This implies
that submission and publication of offering
circulars is not required for admission to
trading
— Admitting notes issued by an OECD
sovereign onto ISM is a very quick and
efficient process which can be completed in
one business day
— Chile was the first OECD sovereign to list
on the ISM without the need for a
Prospectus
OECD Countries are Exempt Issuers
2020
Regulatory Update: Prospectus DirectiveLondon’s markets prepared to ensure efficient implementation
More flexibility in respect of Risk Factors: An ISM admission can
ensure those issuers who wish to maintain consistency with regards to the
drafting of Risk Factors for their Eurobond programmes with their global
programmes (i.e. for jurisdictions where the new EU PR rules on risk
factors do not apply) can choose to do so
Enhanced flexibility in respect of inclusion of information in final
terms: Base prospectuses can be used to issue the full range of
structured and complex bonds without the requirement to publish a
drawdown prospectus or change terms and conditions and thus retain
grandfathering of prospectuses approved pre 21 July 2019
Simplified Disclosure Regime: ISM rules allow issuers to benefit from a
simplified disclosure regime utilising reduced disclosure for any issuer with
any security (debt or equity) admitted to any market deemed suitable by
the Exchange.
Enhanced future incorporation by reference: The ISM Rulebook allows
for the future incorporation by reference of interim and annual financials,
as well as inside information required to be made public under the Market
Abuse Regulation.
Documentation Publication: London issuers have the option to upload
any documents or links onto the specific security pages of their
instruments on the website of the Exchange
―The EU Prospectus regime harmonises requirements for
the drafting, approval and distribution of the prospectus to
be published when securities are offered to the public or
admitted to trading on a regulated market in an EU
Member State.
―The new prospectus regulation replaces the existing
Prospectus directive “PD” and all related technical
measures.
― Although the new rules will not take effect fully until 21
July 2019, competent authorities will be applying the new
requirements to any prospectuses under review that are
expected to be approved after 21 July 2019.
―For a London Stock Exchange listing, a PR compliant
prospectus needs to be submitted to the Listing
Department of the Financial Conduct Authority (“FCA”) for
admission to the regulated market (“Main Market”) of the
London Stock Exchange only.
PDIII will come into effect on the 21st July 2019. Please see our Regulatory Update on PDIII here
International Securities Market (ISM) Key BenefitsPDIII overview
2121
Dual Listing on or Moving to ISMPromotion for dual listing or migrating existing securities on other exchanges
The promotion is subject to conditions which can be found at: https://www.londonstockexchange.com/companies-and-advisors/listing/fees/fees.htm
On the issuance of a new security admitted to ISM, or the admission of and first drawdown under a new
programme on ISM, an issuer can avail a waiver on admission and vetting fees for the admission of existing
securities that are listed on other Exchanges, excluding structured products, as defined in the ISM Rulebook.
This promotion enables issuers to dual list or migrate securities admitted to other suitable exchanges onto
ISM for free, alongside any new issuance. In this way issuers are able to:
― Consolidate debt securities onto one exchange
― Streamline ongoing obligations and exposure to regulatory regimes
― Reduce costs of complying with ongoing obligations (i.e. fewer RIS announcements fees to various
exchanges)
Benefits
2222
What’s New on ISM?Rule changes improving benefits for issuers
Insurance Linked Securities
Enables UK authorised ILS issuers to be admitted to ISM with
tailored documentation disclosure and publishing
requirements suitable to ILS
Future Incorporation by Reference
Allows an issuer to incorporate information that has been
published in accordance with Article 17 of Market Abuse
Regulation1 by reference into its admission particulars
Hardwired Derogations
Provisions have been extended to provide for the omission of
financial information and certain disclosure where the
guarantor group represents more than 25% but less than 75%
of the consolidated profits and assets of the group’s audited
consolidated financial information and provided that the
guarantee prevents structural subordination.
Additional Benefits for Issuers
Dual establishment of programmes on both Main Market and ISM, at
no additional charge, enables securities to be admitted to both
markets interchangeably under the same documentation, providing
flexibility as follows:
1. Incorporation by reference of future financial information as well
as announcements made under Article 17 of MAR
This negates the need for an issuer to file supplementary
prospectuses – securities can be admitted to ISM during windows
where an issuer would typically need to file a supplement on the Main
Market. This maximises an issuer’s market windows and also reduces
legal drafting costs
2. Inclusion of additional terms and conditions not included within
the base prospectus
This ensures that if the T&Cs for specific types of issuance are not
included in the base documentation, this can be added into the pricing
supplement, saving on the requirement to either produce a drawdown
prospectus or update the programme (e.g. green bonds, SONIA-
linked)
On 25 February 2019, the ISM Rulebook was updated to reflect
new features for issuers, based on a market consultation process
1 https://www.fca.org.uk/markets/market-abuse/regulation
23
DCM Focus: Where Can You
Find Us? (Q3 and Q4 Events)
24
London Stock Exchange Events Calendar Q3 and Q4 2019 & Thought Leadership
Leadership in DCM from London Stock Exchange Group:
• FTSE Russell’s presentation to Bank of England’s Working Groupon Sterling-Risk Free Reference Rates on 14 May 2019
• FTSE Russell launched first climate risk government bond index on 8 July 2019. Please see the announcement here
Conference Date Location
IFN UK Islamic Finance Week 5 September London, UK
Euromoney Saudi Conference 18 -19
September Riyadh, Saudi Arabia
IFC Debt Mobilisation Conference23 - 25
SeptemberMadrid, Spain
LSEG Annual IPO & Capital Markets
Forum8 October Dublin, Ireland
LSEG Sustainable Finance Summit 11 October London, UK
LSEG Annual China Conference 23 October Beijing, China
LSEG Annual Israel Conference 25 October Tel Aviv, Israel
Bonds, Loans & Sukuk Turkey13 - 14
NovemberIstanbul, Turkey
Bonds, Loans & Sukuk Emerging
Markets Issuers and Investors
Forum
18 November Singapore
25
DCM Focus: Your LSEG team
Dr. Darko Hajdukovic
Head of UK Fixed Income, Analytics
and Investment Funds
+44 20 7797 3306
Omair Mohyal
Fixed Income Product Specialist
+44 20 7797 3913
Global Sales & Relationship Management
Alex Imseeh
Fixed Income Sales Associate
+44 20 7797 3750
N. America, Europe & India
Sarah Ellena
Manager, Fixed Income & Funds
+44 20 7797 3872
Latin America, China & Japan
Elena Chimonides
Fixed Income Product Specialist
+44 20 7797 1509
Product Development & Innovation
Federica Giacometti
Fixed Income Sales Associate
+44 20 7797 1392
UK, Middle East & Asia Pacific
Shrey Kohli
Director, Fixed Income & Funds
+44 20 7797 4313
David Ashaolu-Coker
Fixed Income Product Specialist
+44 20 7797 4633
UK & Africa
27
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