London Stock Exchange Group plc · LSE:LSEG
London Stock Exchange — Investor Presentation (November 2016)
53 slides from London Stock Exchange's investor presentation, November 2016
Slide 1: Accessing the Global Markets Through London
Accessing the Global Markets Through London London Stock Exchange Fixed Income Market Overview November 2016
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+ 15,000+ 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 Islamic Masala 720 719 718
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) Key Facts: • UK assets under management totalled a record £6.8 2,012 trillion in 2014, the second largest in the world. The UK
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 Listed debt income issuers currencies 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 wholesale markets, offering the choice of trade reporting, end-of-day pricing and continuous quoting • LSE’s PSM accommodates all types of debt • Unique and comprehensive spe
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 Financial Records audited accounts consistent with the International • Local
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 EEA jurisdiction) • Passporting involves a prospectus approved by the issuer's Home Competent authority in the EEA being accepted by another EEA member state as the b
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: Masala Bonds
Masala Bonds 22
Slide 23: 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 24: 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 25: June 2016 India Forum
June 2016 India Forum Hosted by the London stock Exchange, the inaugural India Forum of the Green Infrastructure Investment Coalition (GIIC) brought together European institutional investors, Indian green infrastructure developers and financiers, development banks and perspectives from both governme
Slide 26: 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 27: 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 28: LSEG's India Partnerships
LSEG’s India Partnerships Bharti Airtel Zyfin & Sun Global Yes Bank SBI-LSEG IRFC MoU to foster joint Listing the world’s first India collaborations on bond and FTSE Russell and State Bank Issuance of offshore Rupee Issuance of maiden sterling Description fixed income ETF on London equity issuance i
Slide 29: The Current Status of the Masala Bond Market
The Current Status of the Masala Bond Market: London Stock Exchange listings 14 …33 …raising …from 6 Masala bonds Masala bonds $2.19bn issuers… currently listed… listed historically… in total Maturities Trading Coupons Maturities showing issuance A range of secondary trading Financing possible at at
Slide 30: Masala Bond Case Studies
Masala Bond Case Studies London i Stock Exchange 30
Slide 31: Recent Masala Issuance
Recent Masala Issuance British Columbia NTPC HDFC Axis Bank EBRD IFC 21 March 2016 / Issue Date 09 September 2016 10 August 2016 21 July 2016 01 June 2016 4 March 2016 10 Aug 2015 / 18 Nov 2014 INR 2bn / INR Transaction Issue Size INR 5 bn INR 20 bn INR 30 bn USD500m INR 5bn 3.15bn / INR Details 10b
Slide 32: NTPC lists world's first green Masala bond by an Indian issuer
Distribution by Investor NTPC lists world’s first green Masala bond by an Indian issuer on Banks 15% London Stock Exchange Fund Company Details Transaction Details managers/insurers/ 80% sovereign wealth funds Company NTPC Ltd Issue Date 10 Aug 2016 Private Banks 5% Issue Size INR 20 billion Rating
Slide 33: HDFC is first ever Indian corporate to list Masala bond
HDFC is first ever Indian corporate to list Masala bond, chooses London Stock Exchange for landmark issuance Company Details Transaction Details Distribution by Investor Housing Asset Managers 81% Issue Date 21 Jul 2016 Company Development Finance Private Banks 18% Corporation (HDFC) Issue Size INR
Slide 34: World's first Masala Bond by a foreign government entity on LSE
World’s first Masala Bond by a foreign government entity on LSE Issuer Details Transaction Details Geographical Distribution Company Province of British Columbia Issue Date 09 Sep 2016 Americas 56% Rating AAA / Aaa Issue Size INR 5 billion EMEA 30% Sector Government Coupon 6.6% Asia 14% Market Main
Slide 35: India's first internationally listed certified green bond
India’s first internationally listed certified green bond Company Details Transaction Details Distribution by Investor Company Axis Bank Dubai Issue Date 01 Jun 2016 Banks 30% Rating Baa3/BBB- Issue Size USD 500 million Asset Managers 55% Sector Financials Coupon 2.875% Private Banks 5% Market Main
Slide 36: Using offshore rupee bond issuance as part of a multi-currency GMTN Programme
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 Mar 2016 and Development (EBRD) Rating AAA / Aaa Issue Size INR 5 billion Sector Supranational Yield at issue 6.4% Market M
Slide 37: Inter-American Development Bank was the first issuer of an Indian Rupee bond
• Inter-American Development Bank was the first ISIN Issue Date Maturity Tenor Cpn INRbn issuer of an Indian Rupee denominated bond in London in 2007. This was the first ever non- deliverable Indian rupee-denominated bond, cash XS1016451699 Jan-14 Jul-15 1.5 7.125% 1.00 settled in dollars using pric
Slide 38: IFC Masala bond issuance in 2014 and 2015
• In 2014, IFC moved its Treasury function to London. • In November 2014 International Finance Corporation issued a ten year, 6.3% triple-A rated masala bond, raising Rs 10 billion and paved the way to increase foreign investment in India, mobilising international capital markets to support a subseq
Slide 39: Yield
IFC had been issuing in the offshore markets at approximately 90 -190 bps below the Government of India onshore yield (at time of issuance). Through the Masala bond program, IFC has been able to offer clients in India attractive levels of funding and has invested INR 55.1Bn ($860mm equivalent) in th
Slide 40: Using offshore rupee bond issuance to finance private sector development in India
Using offshore rupee bond issuance to finance private sector development in India Company Details Transaction Details International Finance Corporation Company Issue Date 21 Mar 2016 (part of World Bank Group) Rating AAA / Aaa Issue Size INR 2 billion Sector Supranational Yield at issue 7.1% Market
Slide 41: 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 3.15 billion Sector Supranational Yield at issue 6.45% Market Main M
Slide 42: Using offshore rupee bond issuance to finance Indian infrastructure
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 Rating AAA / Aaa Sector Supranational Yield at issue 6.3% Market Main Market M
Slide 43: Appendix (general slides)
Appendix (general slides) 43
Slide 44: 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 45: 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 Alternative A
Slide 46: 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 47: 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 48: 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 with DTR 6.3, which dictates how information Under LR 17.
Slide 49: Appendix (data sets)
Appendix (data sets) 49
Slide 50: Masala Bonds on London Stock Exchange – Active
Masala Bonds on London Stock Exchange Active Masala Bonds Amount ISIN Issuer Name Coupon (%) Currency Issue Date Maturity Date Raised XS1486517367 Housing Development Finance Corporation Ltd 7 INR 15,000,000,000 09/09/2016 01/09/2020 XS1487470244 Province of British Columbia Canada 6.6 INR 5,000,000
Slide 51: Masala Bonds on London Stock Exchange – Matured
Masala Bonds on London Stock Exchange Matured Masala Bonds Amount ISIN Issuer Name Coupon (%) Currency Issue Date Maturity Date Raised XS1246886128 European Bank for Reconstruction & Development 6.3 INR 1,900,000,000 24/06/2015 24/06/2016 XS1105873688 European Bank for Reconstruction & Development 6
Slide 52: 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 [email protected] UK Head of Fixed Income Darko Hajdukovic +44 20 7797 3306 [email protected] Fixed Income Product Specialist Lillian Georgopoulou +44 20 7797 3482 e
Slide 53: 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
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