Accessing the Global Markets Through London London Stock Exchange Green Bonds November 2016
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 Fixed Income ORB OFIS MOT ExtraMOT Monte Titoli GlobeSettle Post Trade CC&G Information RNS SEDOL Real Time Data Unavista Services Technology Hosting and Connectivity X2M Business Academy Events &Studios Services 2
Heart of the World’s Capital Markets Debt ETFs Equities 375+ 300% 1,300 2,300 500+ 15,000+ Listed companies International International ETFs and ETPs Growth in Debt securities listed with aggregate companies with a government bonds listed in London European ETF on LSE Main Market. market value of $7 combined market from 34 different from 24 issuers trading volumes Overall money raised trillion value of $3.7 countries in 11 in the past 5 exceeds $4.8 trillion trillion different currencies years $338bn+ 11 $914bn £257bn 10 43% RQFII ETFs listed Market share of IPOs raising over Raised in last 10 Raised by sovereign, Total on-exchange $1bn in London in years from 2005 regional and local on LSE since 2014 European ETF turnover in 2015 – 2015 giving investors the last 3 years. governments trading exposure to Chinese A-shares directly. 3
The London Proposition 4
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 US Dollar Green 794 High Yield British Pound Bonds Swedish Krona 752 748 Australian Dollar 734 Islamic Masala Norwegian Krone 720 719 718 716 713 Finance Bonds China Renminbi Japanese Yen Hong Kong Dollar Dim Sum Canadian Dollar Convertible Bonds Mexican Peso and Other Structured Debt ORB ‘Other’ includes 32 different international currencies across 225 bonds, raising a combined £25.2bn More International Equity Listings Than Any Other Exchange Close to 50% trading of ETF in Europe is done in London 50.0% 3000 45.0% LSE 318 Domestic International 40.0% 2500 # of Companies* 638 % of ETF trading 364 35.0% 2000 29 30.0% 25.0% 1500 2,536 20.0% DB 2,074 1000 2,010 15.0% 146 1,672 ENXT 10.0% 500 B.Italiana 590 5.0% SIX 0 0.0% LSEG NYSE NASDAQ SGX HKSE Jan-11 Jan-12 Jan-13 Jan-14 Jan-15 Jan-16 Source : Factset, GFCI 20 5
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 & expand into new markets and efficient listing process Competitive costs Broaden the shareholder base Global hub for innovative products Enhance profile & visibility - with (Green Bonds, RMB, Sukuk) customers & suppliers Access to a stable and loyal investor base Long term employee incentives 6
The Largest Investor Pool in the World $2 trillion invested in international equity out of London Equity AUM held in International Portfolios, by Metro Area (Q4 2015)* • Key Facts: UK assets under management totalled a record £6.8 trillion in 2014, the second largest in the world. The UK is also the leading European centre for • London, more than any other financial centre, offers a management of hedge funds, sovereign wealth funds long-standing globally oriented investor base and private equity funds. 1,987 • UK investors have diversified portfolios and are used • The UK accounts for 37% of global foreign exchange to supporting companies’ international development trading. More US dollars are traded in the UK than in the US. • Institutional investors in the other major listing venues tend to be more domestically focused • The UK is the leading derivative centre worldwide, accounting for 39% of trading in OTC interest-rate derivatives • Global investment portfolios ensure that investors appropriately value businesses with a global profile 1,002 and aspirations • The UK has the leading share of trading in many international financial markets such as cross border bank lending (16%), international insurance premium income (29%) and foreign exchange trading (37%). 575 375 304 287 275 263 251 194 188 89 London New York Oslo Toronto Paris Zurich Frankfurt Tokyo Amersterdam Stockholm HongKong Sydney Source: Facset and LSE calculation, 2016 *international portfolios defined as investment in companies with a domicile different to the country of domicile of the portfolio manager 7
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 and well understood capital raising routes. Domicile of Investors in Selected Exchange’s Listed Securities Domicile of Investors in LSE-Listed Securities by Region 100% ROW ROW ROW 90% 51% ROW ROW ROW 80% UK 70% 13% Domestic 60% Domestic Domestic Domestic Domestic Europe (ex UK) 50% Domestic 30% 40% 30% North America 20% 6% 10% Rest of World 0% Source: Facset and London Stock Exchange calculation, July 2016 Domestic = Europe for Swiss SIX, XETRA and Euronext (Amsterdam, Paris, Brussels, Lisbon) Domestic = North America for NYSE, NASDAQ and Toronto 8 ROW = rest of world
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 international regulatory standards ensure access to a globally oriented countries*, investor base Selected Major Institutional Investors in London Listed Bonds Americas Europe • Capital Research • Blackrock • Vanguard • Legal & General • SSgA Funds • Scottish Widows • Fidelity • Invesco • Blackrock • M&G • Thornburg Investment • Standard Life • Artisan Partners • Asia Pacific AXA • Alliance Bernstein • • Societe Generale State Administration of Foreign • T. Rowe Price • Alecta Pension Exchange (China) • Caisse de dépôt et • • DWS Investment GIC placement du Québec • • Swedbank Robur BNY Mellon Hong Kong • Itau Unibanco Brazil • • Allianz Global Investors Blackrock Japan • • BNP Paribas Mitsubishi UFJ Trust • • Union Investment Sumitomo Mitsui • Privatfonds GMBH Aberdeen Asset Management • Norges Bank Asia Africa and Middle East • Hang Seng Investment • QIA • P.I.C South Africa • Kuwait Investment Authority • Investec • CCB Islamic Bank • Abu Dhabi Investment Authority -11 -10 10 11 -9 -8 -7 -6 -5 -4 -3 -2 -1 0 1 2 3 4 5 6 7 8 9 London trading hours GMT Source: Factset *LSEG, as of September 2015 9
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 broadcasted in their relevant regions. A photographer is also present. Markets Days facilitate face-to-face, Presentations : Welcome by a senior executive of the London Stock Exchange, giving an overview of the market/sector. Summary of the IPO process by top City advisors and investors. scheduled dialogue between Each company will have an opportunity to explain its investment story. companies and institutional 1-2-1 meetings: Highly targeted individual meetings pre arranged by the Exchange. Each company has its own private meeting room the entire day which is fully equipped with all AV investors. This is usually done to capabilities. highlight a specific region or sector Maximising exposure: Through the Exchange’s press team from organisations such as the BBC, The Wall Street Journal, the Financial Times, CNBC & Sky News. focus. • Our central position within the London financial markets offers an unbiased arena in which to bring together select groups of companies with the most extensive possible network of appropriate potential investors. 10
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