London Stock Exchange Group plc · LSE:LSEG
London Stock Exchange — Investor Presentation (2016)
48 slides from London Stock Exchange's investor presentation, 2016
Slide 1: Listing Debt on London Stock Exchange
Listing Debt on London Stock Exchange Page 1
Slide 2: The London Offer
The London Offer Page 2
Slide 3: India – UK Finance Partnership
India – UK Finance Partnership “We will work together with the British “It’s a real opportunity to open a new chapter in the “We will also increasingly raise funds in Government, industry, and the financial market relationship between our two countries.” London’s financial market. I am pleased to de
Slide 4: LSEG at the heart of India-UK EFD
LSEG at the heart of India-UK EFD 13 March 2015, international investors roundtable, LSE Roundtable with Railways Minister, 30 October 2015 London Stock Exchange has more Indian “London Stock Exchange is one of the premier hubs globally companies listed on our equity and debt for any financial activ
Slide 5: LSEG’s Partnerships
LSEG’s Partnerships Company New Deals Deal Size Announcement Issuance of maiden sterling “The bond issue will help Bharti extend maturities and diversify Bharti Airtel £500mm bond in London investor base on its debt portfolio” “LSE is the broadest ETF market in Europe. This ETF will give Listing the
Slide 6: April 2016 Visit of Minister Piyush Goyal
April 2016 Visit of Minister Piyush Goyal “Minister of Power and Coal Piyush Goyal, who is on a two-day visit to the UK, visited the London Stock Exchange. During the visit, Goyal met officials from Natgrid and UK Power Network and explained about his plans and vision to increase the power generatio
Slide 7: India's financing requirements
India's financing requirements India’s financing estimates — India is forecast to be the fastest growing economy in the G20 in 2015 “ The development of a and 2016. masala bond market — The World Bank has estimated that in this decade alone, India’s infrastructure investment needs could reach USD1.7
Slide 8: Raising international profile
Raising international profile A competitive environment — Securing the right profile for bond listings is significant in an environment where companies are competing for capital. — Listing in a global market such as London raises a company’s international profile, especially when the offshore market
Slide 9: Fixed Income Primary Markets - Prestige
Fixed Income Primary Markets - Prestige Profile: Our issuers benefit from the significant global profile of a London presence as well as access to a deep international investor community. Long Standing Experience: — More than 15,000 debt instruments actively listed on LSE’s fixed income markets — Mo
Slide 10: Choice of Markets
Choice of Markets Offering issuers flexibility and a choice of high-quality listed markets: — London Stock Exchange’s Main Market and Professional Securities Market (PSM) are both seen as ‘best in class’ among investors — Our fixed income markets also offer a dedicated specialist offering for Islami
Slide 11: Fixed Income Markets - Innovation
Fixed Income Markets - Innovation — Sukuk: London Stock Exchange is a key global venue for the issuance of Sukuk bonds. Over $46bn has been raised through 64 Sukuks — Green Bonds: a range of dedicated ‘green bond’ segments, offering a flexible range of market models, covering both Regulated Market (
Slide 12: High Regulatory Standards
High Regulatory Standards — UK’s capital markets regulation is based on European Union Directives governing listing documentation, eligibility rules and “As the first multilateral Masala issuer ongoing disclosure requirements. on the London Stock Exchange, IFC had a very positive experience — UK deb
Slide 13: High Regulatory Standards
High Regulatory Standards Predictable UKLA Turnaround times: — Up to 4 clear working days after first submission and subsequent submissions within 2 clear working days. — This applies to plain vanilla debt securities, redemption-linked securities, Medium term note programmes, securitised derivatives
Slide 14: International Competitiveness
International Competitiveness Competitive Fee Structure: — LSE fees are calculated on a sliding scale, based on issue size and type of issue. — No fee is payable for setting up an MTN program. — No annual fee is payable in respect of debt securities on the London Stock Exchange’s markets Eurobonds &
Slide 15: Developing strong secondary markets
Developing strong secondary markets — Over time, with a successful pool of primary market issuance, we believe the infrastructure could be developed to support secondary market liquidity, thereby generating more efficient financing opportunities for Indian corporates. — G20 has committed to developi
Slide 16: Developing strong secondary markets (2)
Developing strong secondary markets (2) The development of Indian Fixed Income indices — Indices can be created to allow comparative measuring of bonds - secondary market liquidity is crucial as these indices need to be investable. — The natural evolution is then the creation of ETFs which add a fur
Slide 17: Secondary Market Trading and Pricing
Secondary Market Trading and Pricing Deep, Liquid Bond Markets: — Bond markets are moving away from less transparent OTC trading towards more liquid platform trading — LSEG has developed highly liquid and transparent electronic fixed income order books that allow for both primary and secondary acces
Slide 18: Complementary Markets
Complementary Markets — The London market can over the medium to long-term facilitate the development of liquidity in secondary market without undermining the crucial role of Indian markets in pricing credit. — Core price formation for Indian credit remains in the Indian market as the London time zo
Slide 19: London Market Overview
London Market Overview Page 19
Slide 20: The London advantage
The London advantage London Stock Exchange Group operates at the heart of the world’s financial centre. Working with us gives our customers unique access to the global connectivity of the City of London. Leading global investment Internationally focused open banking centre market culture World’s lar
Slide 21: London’s investment pool
London’s investment pool London has the largest pool of investors dedicated to international companies. 2,012 International equity assets under management by financial centre 2015 ($bn) 1,050 576 357 302 301 272 271 252 215 194 London New York Oslo Toronto Paris Amsterdam Tokyo Frankfurt Zurich Stoc
Slide 22: Benefits of Listing in London
Benefits of Listing in London Why consider a Listing Benefits of London Prestige of a globally respected exchange Internationally focused open market culture Source of non-bank financing for companies World’s largest pool of international equity looking to diversify their fund streams assets Long-st
Slide 23: London attracts diversified global investors
London attracts diversified global investors — London, more than any other financial centre, offers a long- Top 50 UK investors’ holdings, by region standing globally oriented investor base — UK investors have diversified portfolios and are used to supporting companies’ international development — I
Slide 24: LSEG trading markets
LSEG trading markets LSEG operates a range of world class regulated trading markets and MTFs covering various asset classes and products. Derivatives Equities Debt & Commodities London Stock Exchange London Main Market London Stock Exchange Derivatives Borsa Italiana MTS Large range of UK, IOB DR an
Slide 25: Our World-Leading International Equity & Debt Markets
Our World-Leading International Equity & Debt Markets Equities Debt 2,200+ listed companies with aggregate market 15,000+ debt securities listed on LSE Main value of $7 trillion Market. Overall money raised exceeds £3.5 trillion 500+ international companies with a combined 375+ international governm
Slide 26: Debt Markets
London fps’ Stock Exchange Debt Markets
Slide 27: Debt markets overview
Debt markets overview — London Stock Exchange is one of the world’s major centres for issuing and listing of all types of debt securities — London is the leading global centre for international eurobonds – London-based firms account for 60% of the primary market and 70% of the secondary market — 1,7
Slide 28: A choice of debt-listed markets
A choice of debt-listed markets Main Market Professional Securities Market — Listed, EU-Regulated Market under MiFID — Listed, Exchange-Regulated — Full Prospectus required — No requirement for full Prospectus, only — Securities subject to Chapters 2 and 17 of Listing Particulars necessary the UK Li
Slide 29: Benefits of Professional Securities Market
Benefits of Professional Securities Market PSM offers greater flexibility for issuers in terms of documentation required (listing particulars rather than full prospectus) and continuing disclosure obligations. Because London Stock Exchange’s PSM has full ‘listed’ status, it offers companies all the
Slide 30: Summary of Options - Next Steps
Summary of Options - Next Steps Primary Markets Listing Secondary Market – Exchange Admission Admission to trading documents required: — Main Market — OTC ‘trade-reporting only’ — Electronic copy of — Professional Securities Market segments Prospectus/Offering — OFIS electronic segments Circular/Pri
Slide 31: London Stock Exchange Capital Markets Days
London Stock Exchange Capital Markets Days Format Market Opening: Unique opportunity for all companies, dignitaries and sponsors are invited to London Stock Exchange’s Capital open London’s market at 08:00 on the day of the event. This is filmed and can be accessed by Markets Days facilitate face-to
Slide 32: Masala Bonds on London Stock Exchange
Masala Bonds on London Stock Exchange Page 32
Slide 33: London Stock Exchange’s Global Reach
London Stock Exchange’s Global Reach London Stock Exchange is now the largest Masala bond centre globally. Ever since the first Masala bond listing in London in 2007, we are firmly committed to developing long-term strategic partnerships with issuers to ensure the success of this financing stream an
Slide 34: Listing Venue of Choice for Masala bonds
Listing Venue of Choice for Masala bonds — 12 bonds denominated in Indian rupees are listed on our markets. Historically, 30 INR bonds have been listed in London with Supranationals, Sovereign and Agencies (SSA’s) have become repeat INR issuers over the years – those include Inter- American Developm
Slide 35: Masala bonds on London Stock Exchange
Masala bonds on London Stock Exchange Indian Rupee Bonds on the Main Market Issuer Issue Date Size (INR) Tenor HDFC 7.875% 08/21/2019 21-Jul-16 30,000,000,000 3yrs IFC 7.1% 03/21/31 21-Mar-16 2,000,000,000 15yrs EBRD 6.4% 03/04/19 04-Mar-16 5,000,000,000 3yrs IFC 6.45% 30/10/2018 10-Aug-15 3,150,000
Slide 36: The Current Status of the Masala Bond Market
The Current Status of the Masala Bond Market: London Stock Exchange listings Number of Masala bonds listed 30 (12 active) Number of Masala bond issuers 6 ( 4 active) Capital Raised in INR (USD equivalent) $ 3.42 billion Active issuance maturities (from issue date) 15y, 10y, 5y, 3.5y, 3y Order book t
Slide 37: London Stock Exchange’s Global Reach
London Stock Exchange’s Global Reach “All bonds lead to London “Destination LSE for listing bonds” [,,,] The bourse there has become the Financial Chronicle preferred location for the Indian entities, government and private, to raise new forms of debt finance.” “The development of a masala Business
Slide 38: Case Studies
London fps’ Stock Exchange Case Studies
Slide 39: HDFC first Indian corporate Masala bond
Case Study HDFC is first ever Indian corporate to list Masala bond, chooses London Stock Exchange for landmark issuance Company Details Transaction Details Housing Development Finance Company Issue Date 21 July 2016 Corporation (HDFC) Market Main Market Issue Size INR 30 billion Sector Financials Co
Slide 40: India’s first internationally listed certified green bond
Case Study India’s first internationally listed certified green bond Company Details Transaction Details Geographical Distribution Company Axis Bank Dubai Issue Date 01 June 2016 Asia 48% Market Main Market Issue Size USD 500 million Europe 25% Sector Financials Coupon 2.875% U.S. 16% Rating Baa3/BB
Slide 41: EBRD offshore rupee bond under GMTN Programme
Case Study Using offshore rupee bond issuance as part of a multi- currency EUR 35bn GMTN Programme Company Details Transaction Details European Bank of Reconstruction Company Issue Date 4 March 2016 and Development (EBRD) Market Main Market Issue Size INR 5 billion Sector Supranational Yield at issu
Slide 42: Inter-American Development Bank case study
Case Study — Inter-American Development Bank was the first issuer of an Indian Rupee denominated bond in London in 2007. This was the first ever non-deliverable Indian rupee-denominated bond, cash settled in dollars using prices in the non deliverable forward market for Indian rupees. — Over the yea
Slide 43: Yield Case Study
Case Study Yield IFC Offshore Rupee Yield Curve — In 2014, IFC moved its Treasury function to London. 8.50% — In November 2014 International Finance Corporation 8.00% issued a ten year, 6.3% triple-A rated masala bond, 7.50% raising Rs 10 billion and paved the way to increase 7.00% foreign investmen
Slide 44: IFC offshore rupee bond for private sector development
Case Study Using offshore rupee bond issuance to finance private sector development in India Company Details Transaction Details International Finance Corporation Issue Date 21 March 2016 Company (part of World Bank Group) Issue Size INR 2 billion Market Main Market Sector Supranational Yield at iss
Slide 45: IFC offshore rupee bond for Indian infrastructure
Case Study Using offshore rupee bond issuance to finance Indian infrastructure Company Details Transaction Details International Finance Corporation Issue Date 18 Nov 2014 Company (part of World Bank Group) Issue Size INR 10 billion Market Main Market Sector Supranational Yield at issue 6.3% Rating
Slide 46: IFC green offshore rupee bond
Case Study Using Green offshore rupee bond issuance to finance Indian infrastructure Company Details Transaction Details International Finance Corporation Issue Date 10 Aug 2015 Company (part of World Bank Group) Issue Size INR 3.15bn Market Main Market Yield at issue 6.45% Sector Supranational Rati
Slide 47: Disclaimer
Disclaimer This presentation/document contains text, data, graphics, photographs, illustrations, artwork, names, logos, trade marks, service marks and information (“Information”) connected with London Stock Exchange Group plc (“LSEG”). LSEG attempts to ensure Information is accurate, however Informa
Slide 48: Contact us
Contact us Fixed Income Team Lillian Georgopoulou Email: egeorgopoulou@lseg.com bonds@lseg.com Tel: +44 (0)20 7797 3482 / +44 (0)20 7797 3921 Page 48
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