London Stock Exchange Group plc · LSE:LSEG
London Stock Exchange — Debt Investor Presentation (October 2016)
51 slides from London Stock Exchange's debt investor presentation, October 2016
Slide 1: Accessing the Global Markets Through London
Accessing the Global Markets Through London London Stock Exchange Green Bonds October 2016 Page 1
Slide 2: LSE Group – Depth and Breadth
LSE Group – Depth and Breadth LSEG is a leading international open access financial market infrastructure group LSE plc sits within LSEG as the UK Recognised Investment Exchange business. Primary Markets Cash Equities Listing and Trading Derivatives London Stock Exchange Derivatives IDEX IDEM Fi
Slide 3: Heart of the World's Capital Markets
Heart of the World’s Capital Markets Equities Debt ETFs 2,300 500+ 14,700 375+ 1,300 300% Listed companies International Debt securities listed International ETFs and ETPs Growth in with aggregate companies with a on LSE Main Market. government bonds listed in London European ETF market value of $7
Slide 4: The London Proposition
The London Proposition 4
Slide 5: The London Proposition – Snapshot
The London Proposition – Snapshot Global Financial Centres Index 20 Broad Capabilities Across Many Debt Markets and Currencies Top 10 Financial Centres by GFCI 20 rating Euro 795 794 US Dollar Green High Yield British Pound Bonds 752 Swedish Krona 748 Australian Dollar 734 Islam ic Masala 720 719 71
Slide 6: Benefits of Listing in London
Benefits of Listing in London Why consider a Listing on the LSE Access to the deepest pool of Quality of advisory community international capital in the world and sell-side research coverage Robust regulatory standards Currency to fund business acquisitions & and efficient listing process expand int
Slide 7: The Largest Investor Pool in the World
The Largest Investor Pool in the World $2 trillion invested in international equity out of London International equity assets under management by financial centre 2015 ($bn) • London, more than any other financial centre, 2,012 offers a long-standing globally oriented investor base • UK investors ha
Slide 8: A Truly Global Investor Base
A Truly Global Investor Base Global Investors Buy London-Listed Stocks - London remains the world’s largest equity market, with more international assets under management than any other global financial centre. - Companies listing in London are able to access overseas investors through widely used a
Slide 9: Raise Your International Profile
Raise Your International Profile London – Global Hub for Investors • Listing in a global market such as London raises a company’s international • LSE is home to the deepest global foreign exchange centre. profile. • LSE markets are supported by a network of 350 member firms from over 20 • High inter
Slide 10: 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 open London’s market at 08:00 on the day of the event. This is filmed and can be accessed by • London Stock Exchange’s Capital international TV stations bro
Slide 11: After Referendum Business As Usual
After Referendum Business As Usual International Deals Continue As a result of the recent EU Referendum and subsequent Brexit vote, uncertainty about London’s status as a financial centre has arisen. The international community has responded and shown their commitment to London via a number of high
Slide 12: London Stock Exchange's Fixed Income Offering
London Stock Exchange’s Fixed Income Offering 12
Slide 13: Global Home for Raising Fixed Income Capital
Global Home for Raising Fixed Income Capital 2570 …from 59 … raising Int’l issuers.. countries £3.5 trillion The London Stock Exchange is …via 15,000+ the global financing hub for fixed …in 39 income issuers currencies Listed debt instruments Bond Primary and Secondary Market Statistics by Region 3%
Slide 14: Centre of Global Fixed Income Trading
Centre of Global Fixed Income Trading LSEG has developed Bonds Value Traded on Exchanges (USDm) highly liquid and transparent electronic fixed income order books that allow for both primary and secondary 32,500 access and trading to international investors With changes to 22,000 regulation including
Slide 15: Cutting Edge Financial Products
Cutting Edge Financial Products Apart from standard issuance we are leading the way in new fixed income products • Retail and w holesale m arkets, offering the choice of trade reporting, end-of-day pricing and continuous quoting • LSE’s PSM accom modates all types of debt • Unique and com prehensive
Slide 16: A Choice of Debt Markets
A Choice of Debt Markets Main Market Professional Securities Market Applicable UK • Chapters 2 and 17 of UK Listing Rules • Chapter 4 of UK Listing Rules Listing Rules • At least two years trading records and independently audited accounts consistent with the International Financial Financial Record
Slide 17: Listing & Admissions Process
Listing & Admissions Process 17
Slide 18: Smooth Listing Process
Smooth Listing Process UK debt markets’ high standards ensure credibility amongst the global investor base. The UK Listings Authority (UKLA) has a reputation for its a robust and balanced approach to implementing the listing rules whilst maintaining efficiency of the listing process. • Listing proce
Slide 19: Passporting a Prospectus
Passporting a Prospectus Easy process to dual list in London via passporting (when the bond prospectus is already approved in another EU jurisdiction) • Passporting involves a prospectus approved by the issuer's Home Competent authority in the EU being accepted by another EU member state a s the bas
Slide 20: Admission Process
Admission Process For admission, the documents that we need are1: • Signed Form 1 with EU sanctions complete • Signed Board Minutes • Prospectus • UKLA approved letter • Confirmation of the note being issued (usually the day before) Also as soon as possible in the admission process, it is necessary
Slide 21: International Cost Competitiveness
International Cost 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 Eurobo
Slide 22: Green Bonds
Green Bonds 22
Slide 23: What is a Green Bond?
What is a Green Bond? Green bonds are any type of bond instrument where the proceeds will be exclusively applied to finance or re-finance in part or in full new and/or existing eligible Green Projects and which are aligned with the four core components of the Green Bond Principles. The key feature o
Slide 24: Green Bonds – A Diversified Issuer Base
Green Bonds – A Diversified Issuer Base The green bond market expanded further in 2015, thanks to a wider range of issuers and types of green assets, as well as new geographies. • The UK, China, Germany, Japan, the Netherlands, Norw ay and the US have show n significant growth in green bond market s
Slide 25: Green Bonds Characteristics
Green Bonds Characteristics This is due to the dominance within 43% of the bonds outstanding fall into This is in contrast to the climate-aligned Bonds that have received an external the climate-aligned universe of large the AAA credit rating band, primarily bond market, where the currency spread re
Slide 26: LSEG and Green Financing
LSEG and Green Financing LSEG is a partner exchange of the United Nations Sustainable Stock Exchanges (SSE) initiative. 39 … raising a …in 7 combined Green London Stock Exchange Group’s currencies activity in green financing is focussed bonds $10bn on two key areas: fixed income products and informa
Slide 27: Green Bonds Key Milestones
Green Bonds Key Milestones LSE is a recognised supporter of the Green Bond market and has established strong relationships with key market participants August 2015 January 2016 December 2009 March 2014 First offshore RMB LSEG joins the LSE’s First First RMB Green bond Green Infrastructure Green bond
Slide 28: Green Bond Admission Criteria
Green Bond Admission Criteria Issuers admitting bonds to the Green Bond segments on London Stock Exchange must provide proof of an external review* to confirm the “green” nature of the instruments and a written confirmation (email confirmation would suffice) that the entity appointed to conduct the
Slide 29: Self-Certification – Impact Reporting
Self-Certification – Impact Reporting Impact Reporting: the issuer should illustrate the expected environmental and/or climate impact of each eligible project to which green bond proceeds have been allocated using, for example, a number of core indicators such as: For SSA issuers admitting on the
Slide 30: Green Bond Case Studies
Green Bond Case Studies London i Stock Exchange 30
Slide 31: Recent Green Bond Issuance
Recent Green Bond Issuance IFC Agricultural Transport for Shanks Development World Bank Bank of China London Bank of Japan Group 10 Aug 2015 / Issue Date 20 Oct 2015 24 Apr 2015 16 Jun 2015 21 Oct 2015 29 Jun 2015 17 Jun 2014 USD 400mn / INR 3.15bn / USD 500mn / Issue Size GBP 400mn EUR 100mn EUR 30
Slide 32: Using Green offshore rupee bond issuance to finance Indian infrastructure
Using Green offshore rupee bond issuance to finance Indian infrastructure Company Details Transaction Details International Finance Corporation Company Issue Date 10 Aug 2015 (part of World Bank Group) Rating AAA/Aaa Issue Size INR 3.15billion Sector Supranational Yield at issue 6.45% Market Main Ma
Slide 33: Using Green offshore renminbi bond issuance to finance Chinese climate-friendly investments
Using Green offshore renminbi bond issuance to finance Chinese climate-friendly investments Company Details Transaction Details International Finance Corporation Company Issue Date 17 Jun 2014 (part of World Bank Group) Rating AAA/Aaa Issue Size RMB 500 million Sector Supranational Yield at issue 2.
Slide 34: Using Green offshore dual currency bond issuance to finance green projects
Using Green offshore dual currency bond issuance to finance green projects Company Details Transaction Details Company Agricultural Bank of China Issue Date 20 Oct 2015 Rating A1/A $400 million / $500 million / Issue Size RMB 600 million Sector Financials Yield at issue 2.125% / 2.75% / 4.15% Market
Slide 35: Using Green bond issuance to finance green Railway projects
Using Green bond issuance to finance green Railway projects Company Details Transaction Details Company Transport for London Issue Date 24 Apr 2015 Rating AA+/Aa2/AA Issue Size GBP 400 million Sector Government Yield at issue 2.125% (G10yr+57bp) Market Main Market Maturity 10 years Company profile D
Slide 36: Using Green Bond issuance to tap into retail investor liquidity
Using Green Bond issuance to tap into retail investor liquidity Company Details Transaction Details Company Shanks Group plc Issue Date 16 Jun 2015 Rating n/a Issue Size €100 million Sector Waste & Disposal Services Yield at issue 3.65% Market Main Market (LSE) Maturity 7 years Company profile Debt
Slide 37: Using sustainability bond issuance to tap into ESG investors liquidity pool
Using sustainability bond issuance to tap into ESG investors liquidity pool Company Details Transaction Details Company Development Bank of Japan Issue Date 21 Oct 2015 Rating A1/A Issue Size EUR 300 million Sector Government Yield at issue 0.375% Market PSM Maturity 4 years Press Release Debt issua
Slide 38: Using Green Bonds to expand private investors product range
Using Green Bonds to expand private investors product range Company Details Transaction Details Company World Bank Issue Date 29 Jun 2015 Rating AAA/Aaa/AAA Issue Size $84 million Sector Supranational Coupon Linked to Ethical Equity Index Market MOT (Borsa Italiana) Maturity 8 years Company profile
Slide 39: Appendix (general slides)
Appendix (general slides) 39
Slide 40: Main Market
Main Market Description Criteria Main Market Flagship Market: The London Stock Exchange’s Main Market is the world’s most international market for the admission and trading of equity, debt and Security type Fixed Income other securities, providing access to Europe’s deepest capital pool Located
Slide 41: Professional Securities Market
Professional Securities Market Description Criteria PSM Lighter Regulation: Outside scope of EU Prospectus and Transparency Directives Security type Fixed Income No EU Passport: Designed to meet financing needs of issuers who do not Official list status Listed require EU passport Regulated MTF
Slide 42: UKLA Listing Requirements Checklist
UKLA Listing Requirements Checklist LR 2 Required by Rule Description LR17.2.1 2.2.1 (1) Applicant Duly incorporated The applicant must be validly established according to the relevant laws of its place 2.2.1 (2) Conformity with constitution The applicant must be operating in conformity with its con
Slide 43: Ongoing Obligations of Debt Issuers
Ongoing Obligations of Debt Issuers London Stock Exchange’s Regulated Market (Main Market) – EEA Regulated The Professional Securities (PSM) (Unregulated Market) – Exchange Regulated Relevant Disclosure and Transparency Rules (DTR) Disclosure and Transparency Rules (DTR) legislation and rules Listin
Slide 44: Ongoing Obligations of Debt Issuers (cont'd)
Ongoing Obligations of Debt Issuers (cont’d) London Stock Exchange’s Regulated Market (Main Market) – EEA Regulated The Professional Securities (PSM) (Unregulated Market) – Exchange Regulated Dissemination The issuer is required to comply w ith DTR 6.3, w hich dictates how information Under LR 1
Slide 45: Appendix (data sets)
Appendix (data sets) 45
Slide 46: Green Bonds on London Stock Exchange
Green Bonds on London Stock Exchange Green Bonds Listed on London Stock Exchange dedicated Green Bond Segments and Sectors Amount ISIN Issuer Name Coupon(%) Currency Issue Date Maturity Date Market Raised US62630CAH43 MuniFin 1.375 USD 500,000,000 04/10/2016 21/09/2021 Main Market XS1494406074 Nordi
Slide 47: Green Bonds on London Stock Exchange
Green Bonds on London Stock Exchange Green Bonds Listed on London Stock Exchange dedicated Green Bond Segments and Sectors Amount ISIN Issuer Name Coupon(%) Currency Issue Date Maturity Date Segment Raised XS1309485701 Development Bank of Japan Inc 0.375 EUR 300,000,000 21/10/2015 21/10/2019 PSM XS1
Slide 48: Green Bonds on London Stock Exchange
Green Bonds on London Stock Exchange Green Bonds Listed on London Stock Exchange dedicated Green Bond Segments and Sectors Amount ISIN Issuer Name Coupon(%) Currency Issue Date Maturity Date Segment Raised XS1069348941 Stockholms Lans Landsting 0 SEK 870,000,000 19/05/2014 19/05/2020 Main Market XS1
Slide 49: Green Bonds on Italian MOT
Green Bonds on Italian MOT Green Bonds listed on Borsa Italiana MOT markets Currency of ISIN Issuer Description Coupon (%) Issue Date Maturity Market Issue Notes Linked to the Ethical Europe Floating – XS1233613188 IBRD Equity Index due July 5, 2023 - Green USD 28/07/2015 05/07/2023 MOT Index linked
Slide 50: London Stock Exchange's Fixed Income Team
London Stock Exchange’s Fixed Income Team Primary Markets Global Head of Fixed Income Pietro Poletto +39 02 7242 6243 Pietro.Poletto@borsaitaliana.it UK Head of Fixed Income Darko Hajdukovic +44 20 7797 3306 dhajdukovic@lseg.com Fixed Income Product Specialist Lillian Georgopoulou +44 20 7797 3482 e
Slide 51: Disclaimer
Disclaimer This presentation/document contains text, data, graphics, photographs, illustrations, artw ork, names, logos, trade marks, service marks and information (“Information”) connected w ith London Stock Exchange Group plc (“LSEG”). LSEG attempts to ensure Information is accurate, how ever Info
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