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Debt Capital Markets Update
London Stock Exchange
Q2 2020
2
Contents
1. Key Highlights
2. Trends in Global Debt Capital Markets
3. Q2 2020 London Stock Exchange deals
4. DCM Focus: New Website, Sustainable Bond Market,
Sovereign issuance and the UK
5. Where Can You Find Us
6. Your LSEG team
3
Key Highlights from Q2
4
COVID-19 response
bonds, including sovereign
issuance
BTP Italia COVID-19 Social and
Sustainable bonds
Source: London Stock Exchange, Bloomberg, June 2020
Exchange rate £/€ - 19 June 2020: 0,90505
Supporting COVID-19 response bonds at LSEGOver £65 billion raised to help mitigate the impact of the pandemic
£38+ billion
Amount raised by COVID-19 response bonds on London Stock Exchange and Borsa Italiana
£20+ billion
Largest BTP Italia ever
issued
£6+ billion
Total amount raised by the
social and sustainable bonds
to mitigate the impact of the
pandemic
5
Source: Bloomberg, London Stock Exchange, June 2020
Quote: https://www.environmental-finance.com/content/awards/sustainable-investment-awards-2020/winners/stock-exchange-of-the-year-london-stock-exchange.html
Exchange of the Year: Sustainable Investment AwardsLondon Stock Exchange recognised by Environmental Finance
“London Stock Exchange impressed
judges by both the breadth and depth of
its sustainable investment innovation,
including the launch of its Green
Economy Mark and Sustainable Bond
Market.”
London Stock Exchange has been named Stock
Exchange of the Year in the Environmental Finance
Sustainable Investment Awards 2020.
In the last year, London Stock Exchange has developed a
comprehensive and highly effective sustainable finance and
investment programme which focused on three areas:
‒ Driving best practice in disclosure. Helping all equity,
fund and fixed income issuers to understand and
implement effective ESG disclosures that reflect
investor needs and trends in regulation.
‒ Supporting new green-growth companies and
funds. Improving the visibility of, and access to capital
for, green and sustainable businesses globally.
‒ Enabling the transition to a sustainable, low carbon
economy. Innovating to enable companies across all
sectors to access the capital needed to address
environmental risks and opportunities.
6
Source: London Stock Exchange, June 2020
New Website LaunchedMaximise visibility through the new www.londonstockexchange.com
‒ London Stock Exchange’s website has been enhanced to give it a fresh look and feel and to
deliver a better user experience.
‒ We have created a new personal investing section and implemented enhanced data and search
with dynamically updated market data pages, heatmaps and powerful price and instrument
search filtered by issuer, instrument type and market
‒ One of the key roles of the site is to help investors find information on our issuers, and for issuers
to be able to customise their pages through our Issuer Services Portal
130 million
Visits to
londonstockexchange.com
last year
7
The Green & Social Bond Principles Excomm announced the Sustainability-Linked
Bond Principles (SLBPs) at the 6th Annual General Meeting. These are voluntary
guidelines for sustainability-linked bonds (SLBs) defined as forward-looking
performance-based bond instruments where the issuer is committing to future
improvements in sustainability outcomes within a predefined timeline. The ExComm
released a 2020 update of the Social Bond Principles providing expanded social
project categories and additional target populations, and incorporating recent
guidance for social bonds addressing COVID-19.
Martin Scheck, Chief Executive of the International
Capital Market Association (ICMA), said: "By
publishing Sustainability-Linked Bond Principles, the
GBP & SBP Executive Committee is providing
guidance for a highly innovative and versatile debt
instrument that can really expand the sustainable
finance market while preserving its integrity.
Separately, the update of the Social Bond Principles
accompanies a pivotal moment for social bonds that
have shown their relevance with a surge of issuance
addressing the consequences of COVID-19."
15 Speakersfrom Singapore, Geneva, Paris, Frankfurt, Zurich, Oslo, London, DC and New York
400+
Unique Views
2h 45m
Average
viewing time
c.1000
Total Views
Green & Social Bond Principles AGMICMA hosts AGM on Spark Live on 9 June 2020
Source: London Stock Exchange, ICMA, June 2020
8
Guests had the opportunity to interact with the panellists as
they provided their expert views on the challenges that Indian
companies are facing, the environment for raising capital in
international markets and the market outlook for 2020.
The session focused on green and sustainable finance – the
fastest growing asset class in volume, scope and popularity –
and on how the industry could leverage this opportunity to
drive forward green and sustainable finance for their funding
needs.
605
Total
Views
323
Unique
Views
Webinar: An Update on Debt Capital Markets in IndiaWith Axis Bank, DLA Piper, GuarantCo, MUFG and Refinitiv
On 29 June 2020 London Stock Exchange hosted some of the leading voices from the debt capital
markets in India in an interactive webinar to assess the impact of COVID-19 on India's debt capital
markets.
Watch the video replay here: https://www.lsegissuerservices.com/spark/debt-capital-markets-update-india
9
Article: GFC Media
London Stock Exchange: Making Global
Markets More Efficient and Accessible
Panel: Global Borrowers & Bond Investors Forum
Covid-19 and the Capital Markets: Impact,
Response and Recovery Shrey Kohli
Panel: Bonds Loans and Sukuk 24
Corona social bonds: How does the pandemic
make a stronger business case for pursuing
strategic ESG integration into funding strategies?
– Elena Chimonides
Article: Environmental Finance
London Stock Exchange Group: Supporting
more shades of Green
Article: Spark
How London’s dynamic markets are responding
to COVID-19
H1 2020 Thought leadershipRecent panels and articles LSEG Debt Capital Markets
10
Trends in Global Debt Capital
Markets: Q2 2020
11
Global Macro and DCM DynamicsRates at historic lows; governments and investment grade corporates drive issuance
Central banks loosen policy rates in effort to stimulate economy Upcoming announcements provide insight into COVID-19 impact
Despite strong headwinds, DCM issuance trends keeps steadyAnnual Supply by month, since 2018
Source: Bloomberg, FactSet, Dealogic, June 2020
Global H1 2020 Issuance, by sector
Date Q3 2020
13 Jul Treasury Budget
14 Jul Exports/Imports
15 Jul Policy Rate
16 Jul Unemployment Rate
16 Jul Trade Balance
23 Jul Consumer Confidence Indicator
29 Jul FOMC Meeting
30 Jul Unemployment Rate
-0.10%
-0.05%
0.00%
0.05%
0.10%
0.15%
0.20%
0.25%BOE base rate
Eurozone deposit rate
Fed Funds rate
0
5
10
15
20
25
0
1
2
3
4
5
6# o
f bonds (
‘000)
Volu
me (
$tn
)
Value raised ($tn) # of bonds 68,00016,000
1,180 983 695 389 363
-
1,000
2,000
3,000
4,000
5,000
Fin
ancia
ls
Govern
ment
Industria
ls
Consum
er
Dis
cre
tionary
Utilitie
s
Mate
rials
Energ
y
Consum
er S
taple
s
Health
Care
Technolo
gy
Com
munic
atio
ns
# o
f bonds
H1 2020 H1 20192020
12
— 521 bonds were issued on London Stock Exchange during H1 2020; $358bn in debt capital raised
— London has seen a 3% uptick in issuance compared to H1 2019, and retained its #2 ranking amongst major venues
Bloomberg, as of 30 June 2020
Note: Based on individual tranches issued. Duplicates for 144A and RegS are consolidated. Structured Products are excluded
London Stock Exchange bonds: 2015 to H1 2020 Bonds/Capital Raised across select exchanges 2019 H1 vs. 2020 H1
Debt Listings By ExchangeLondon’s increased market share of global listings
564
346
202
120
678
521
217
109
-
100
200
300
400
500
600
700
800
Luxem
bourg
London
Dublin
Sin
gapore
# o
f bonds
H1 2019 H1 2020
$453bn$491bn
$443bn
$358bn
902
1,068
934
521
0
200
400
600
800
1000
1200
0
100
200
300
400
500
600
2017 2018 2019 H1 2020
No
. Of B
on
ds
Cap
ita
l R
ais
ed
($
bn
)
Value raised ($bn) # of bonds
13
DCM Highlights: Q2 2020
14
Source: London Stock Exchange Data, Dealogic, July 2020
Co
rpo
rate
s +
FIG
So
ve
reig
ns
&
Su
pra
na
tio
na
ls
Gre
en
Bo
nd
s &
SO
NIA
Key Q2 2020 Issuances
EUR 1 bn, 1.13%, 6Y
EUR 1 bn, 1.50%, 10Y
April 2020
Main Market
EUR 1bn, 2.38%, 6Y
April 2020
Main Market
EUR 1.25bn, 0.38%, 4Y
April 2020
Main Market
EUR 1bn, 0.5%, 4Y
EUR 1bn, 1.25%, 12Y
May 2020
Main Market
EUR 750m, 1.58%, 2Y
EUR 500m, 2.28%, 7Y
EUR 500m, 2%, 4Y
April 2020
Main Market
USD 500m, 4.75%, 3Y
May 2020
ISM
EUR 750m, 0.75%, 6Y
EUR 1bn, 1.38%, 12Y
May 2020
Main Market
USD 1.5bn, 3.88%, 10Y
May 2020
Main Market
GBP 750m, 1.63%, 15Y
GBP 750m, 1.25%, 8Y
EUR 750m, 0.13%, 3Y
May 2020
Main Market
EUR 850m, 0.75%, 10Y
EUR 850m, 0.38%, 6Y
GBP 500m, 1.75%, 12Y
May 2020
Main Market
GBP 500m, 3.75%, 10Y
May 2020
ISM
EUR 750m, 1.375%, 5Y
May 2020
Main Market
USD 1bn, 2%, 10Y
USD 750m, 1.38%, 5Y
USD 750m, 2.13%, 12Y
May 2020
Main Market
USD 1bn, 2.5%, 10Y
May 2020
Main Market
USD 2.5bn, 2.9%, 5.5Y
USD 1.5bn, 3.25%, 10.5Y
USD 3bn, 4.5%, 40Y
April 2020
Main Market
EUR 700m, 1.625%, 5Y
Covid-19 Bond
May 2020
Main Market
USD 1.25bn, 5.75%, 4Y
USD 1.75bn, 7.625%, 12Y
USD 2bn, 8.875%, 30Y
May 2020
Main Market
USD 1.46m, 2.45%, 11Y
May 2020
ISM
USD 1.75bn, 0.50%, 5Y
May 2020
Main Market
EUR 500m, 0.625%, 6Y
Covid-19 Bond
June 2020
Main Market
USD 500m, 58.875%, 6Y
USD 750m, 6.378%, 11Y
June 2020
Main Market
GBP 850m, 0.0%, 5Y
SONIA linked
April 2020
Main Market
SEK 200m, 0.0%, 3Y
Green Bond
April 2020
Main Market
GBP 375bn, 2.375%, 8Y
GBP 450bn, 3%, 17Y
Green Bond
May 2020
Main Market
EUR 1.5bn, 1.75%, 15Y
Green Bond
June 2020
Main Market
GBP 300m, 1.88%, 42Y
Green Bond
June 2020
Main Market
EUR 40m, 0.15%, 14Y
Green Bond
June 2020
Main Market
SEK 500m, 0.48%, 6Y
Green Bond
June 2020
Main Market
15
Source: London Stock Exchange Data, July 2020
Note: Based on individual tranches issued. Duplicates for 144A and RegS are consolidated
Uptick in London Stock Exchange ListingsCapital raised up 59% QoQ in Q2 2020
A total of £131.0bn was raised through bond issuances on both the Main Market and ISM in Q2 2020, up 4.9% YoY and 59.3% QoQ.
Total issuances across the Main Market and ISM up 12.6% YoY in Q2 2020
276307 291
365399
338
8
11 25
19
20
20
0
20
40
60
80
100
120
140
0
100
200
300
400
500
Q1 Q2 Q3 Q4 Q1 Q2
2019 2019 2019 2019 2020 2020
To
tal C
apita
l Ra
ise
d (£
bn
)N
o o
f B
ond
s Issu
ed
Main Market (LHS) ISM (LHS) Capital Raised (£bn) (RHS)
1616
178 bonds
listed on London’s
International
Securities Market
(ISM)
20 countries
Diverse global
reach
£49.2 billion
Money raised on
International
Securities Market
59 issuers
Sovereigns and
corporates
Source: London Stock Exchange Data, Bloomberg, July 2020
* Term Investment Grade refers to categories ranging from ‘AAA’ to ‘BBB’. High Yield refers to categories ranging from ‘BB’ to ‘D’
** Region graphs are based on the capital raised
Note that ISM Issuance chart depicts figures on a cumulative basis
ISM Issuance since Launch
By Credit rating*
By Region**
ISM continues to growCapital raised up 18% YoY in Q2 2020
1 2 411
1929
4052
6579
109
131
158
178
0
20
40
60
80
100
120
140
160
180
200
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
2017 2018 2019 2020
0
10
20
30
40
50
60
Num
ber o
f Bonds
Am
ount ra
ised (
$bn)
55%35%
4%
4% 2%
APAC Europe North America
Middle East Africa
19%
74%
High Yield Investment Grade
ISM listed bonds are now eligible for inclusion in Bank of England’s Corporate Bonds
Purchase Scheme. Here for more information.
17
Issuance Details
CompanyAsian Infrastructure
Investment Bank
Rating Aaa/AAA/AAA
Sector Supranationals
Market Main Market
Transaction Details
Issue Date 28 May 2020
Issue Size $3 billion
Coupon 0.50%
Maturity 5 years
Source: London Stock Exchange, Bloomberg, Dealogic July 2020
AIIB returns with second benchmark and first Sustainable Development Bond “With this recent transaction it was our goal to
cement our position amongst the top tier MDB
issuers as well as to provide investors with the
flavour of the type of issuer we want to be. This
transaction was a 5-year $3 billion trade and it had
an oversubscription of 600 million dollars from 70
top tier investors representing 31 different countries.
The proceeds of which will be used in our general
resources which, amongst other things, will finance
the investment operations for the Crisis Recovery
Facility and hopefully be able to help our members
through these very challenging times.”
Martine Mills Hagen – Head of Funding, AIIB
⎯ On 28 May 2020, the Asian Infrastructure Development Bank issued its debut
sustainable development bond on London’s Main Market pricing it at $3 billion.
⎯ The sustainable bond was issued at a maturity of 5 years and a coupon rate of 0.50%.
⎯ The proceeds will help finance AIIB’s newly created COVID-19 Crisis Recovery Facility
aimed at mitigating the economic impact of the coronavirus pandemic.
⎯ The COVID-19 Crisis Recovery Facility was initially proposed for $5 billion and
subsequently increased to up to $10 billion.
⎯ BMO, Citi, Credit Agricole CIB, HSBC, ICBC acted as lead bookrunners for this deal.
Asian Infrastructure Investment BankIssues $3 billion debut sustainable development bond
18
DCM Focus: New Website
1919
Source London Stock Exchange, July 2020
Please refer to our detailed guide for guidance.
Features of the New WebsiteLearn about the new functionalities offered by our enhanced website
Use the document upload functionality for your security pages
We are introducing a new document publication tool in order to help increase transparency and ease of finding relevant issuance information. This new tool allows issuers with an Issuer Services profile to upload all relevant documentation and display them on your dedicated issuer and security pages. Utilising this tool also allows you to meet the requirements of the new Prospectus Regulation publication rules in a quick and easy way.
o The new upload feature for debt issuers gives issuers the power to manage documents linked to individual securities in real time
o Upload a range of documents including programmes, pricing supplements, sustainability documents and documents incorporated by reference
o Search instruments by TIDM or instrument name, and link bonds to related programmes or sustainability frameworks
o Issuer has full control of documents that have been uploaded / need to be deleted
o Documents are made available for the life of the instrument
Create your own profile for the website
Issuers can now create their own profiles for the website via
our Issuer Services platform (www.lsegissuerservices.com),
with the ability to include investor relations documents,
events, contacts, videos and social media feeds. This is a
unique opportunity for you to raise the visibility of your
company with investors for free. Through your individual
issuer page you can also livestream your financial results
presentations, AGMs and more.
20
From June 2020 as part of the Issuer Services suite of services issuers will be able to upload all issuance documents
to LondonStockExchange.com to be displayed on dedicated issuer pages and downloadable from one place
• All debt Issuers will be either
invited to register for the
platform, or they may request
a login directly from
www.lsegissuerservices.com
• User authentication utilises an
intuitive “Magic Link” to
provide users with secure
access without the need for a
password
• All instruments related
to the issuer will appear
automatically on one
page
• The universal search
bar can be used to
quickly find the security
you are looking for
• Clicking an individual
instrument allows you to
add and remove
documents for that
security
• Documents can be
uploaded directly via
PDF or MS Word formats
• Issuers can add, edit and
delete programmes as
well as downloading all
documents for a
programme
• Link drawdown
Instruments to their
programmes
• Sustainability documents
and documents
incorporated by reference
can also be uploaded
• Publish directly to
LondonStockExchange.co
m issuer page where
documents are displayed
all in one place, with
documents grouped under
programmes clearly
shown
Login in/Sign up See all your listed
Instruments
Edit/add instrument
document
Edit/add programme
documents
Publish to
LondonStockExcha
nge.com
New Document Upload FeatureOverview of Functionality
2121
Bringing More Visibility to the DCM SpaceUsing digital to talk to investors globally through www.londonstockexchange.com
Company Profile Data
Profile views:
456,145
Active users:
101,802
Geographic split:
49% UK / 51% Global
22
DCM Focus: Sustainable
Bond Market Evolution
2323
237Active bonds
admitted to SBM
are listed in London
£47bnTotal money raised from
green issuances
61Unique bond issuers
17Unique currency
denominations
Source: Bloomberg, London Stock Exchange, July 2020
*Based on social, sustainable and issuer-classified bond issuances on London Stock Exchange
Sustainable Bond Market issuance since 2015
Sustainable Bond Market breakdown
London’s Sustainable Bond MarketSocial bond issuance in Q2 2020 surpasses 2019 total
EUR31%
USD30%
GBP28%
SEK8%
Other3%
0
10
20
30
40
50
60
-
2.0
4.0
6.0
8.0
10.0
12.0
14.0
16.0
2015 2016 2017 2018 2019 2020 Q1 2020 Q2
No.
of B
onds
Capital R
ais
ed (
£bn)
Green Issuer Level Classification Social Sustainability No of Bonds
Government 45%
Utilities29%
Financial21%
Consumer 2%
Other 3%
2424
Source: London Stock Exchange, June 2020
Sustainability-Linked BondsA dedicated subsegment for SLBs within the Issuer-Level (non UoP) segment
London Stock Exchange welcomes the new
Sustainability-Linked Bonds Principles (SLBPs)
published by the International Capital Market
Association (ICMA) at the recent GBP/SBP Annual
General Meeting. The SLBPs are new voluntary
guidelines that provide market participants best
practice when preparing to issue Sustainability-Linked
Bonds (SLBs).
In response to this development, London Stock
Exchange has introduced the ability for issuers to
display SLBs on the Issuer-Level Classification
segment on SBM, providing they are issued in
accordance with the SLBPs. This enables those
businesses that meet the eligibility criteria to be
able to admit bonds to SBM and benefit from
enhanced visibility. The distinction between bonds
on the Issuer-Level Segment and Use-of-Proceeds
Segment is crucial for investors and issuers seeking to
provide transparency, as we see more businesses
make sustainability central to their operations
25
Support for Issuers of Social BondsAdmission fee waiver for social or sustainability bonds whose proceeds mitigate the impact of COVID-19
– At LSEG we believe that social and sustainability bonds with use of proceeds aligned to funding essential services such
as healthcare, water and sanitation, supporting employment, or with a link to the relevant UN Sustainable Development
Goals can have a role to play in directing capital to initiatives that will help mitigate the impact of COVID-19
– London Stock Exchange will be admitting social and sustainability bonds with use of proceeds aligned towards mitigating
the impact of COVID-19 with no admission fees until 1 October 2020
Eligibility Criteria
• Applies to bonds admitted to one of London Stock Exchange’s markets
• Applies to social or sustainability bonds only that meet the eligibility
criteria for the Sustainable Bond Market, and where use of proceeds are
aligned towards addressing or mitigating social issues wholly or partially
emanating from COVID-19 through projects related to access to essential
services, healthcare, employment, water and sanitation or the relevant
UN Sustainable Development Goals under the issuer’s publicly available
and provided framework
• Issuers and advisors would need to request for the application of this fee
waiver on the relevant Sustainable Bond Market Application and
Declaration form (sent to [email protected] and [email protected])
• End date: Thursday, 1 October 2020
For further information on the Sustainable Bond Market,
refer to the dedicated factsheet and eligibility criteria
here. Additional guidance on ICMA’s Social Bond
Principles and their relevance in addressing COVID-19
crisis can be found here, and high level mapping to the
Sustainable Development Goals can be found here.
Source: LSEG, June 2020
Recent Social Bond Issuers to mitigate against the impact of COVID-19:
26
Issuance Details
CompanyCorporacion Andina de
Fomento (CAF)
Rating
(M/S&P/F)Aa3 / A+ / A+
Sector Supranational
Market Main Market
Transaction Details
Issue Date 27 May 2020
Issue Size €700 million
Coupon 1.625%
Maturity 5 years
Source: London Stock Exchange, Bloomberg, Dealogic June 2020
CAF tightens euro five-year after accelerating social bond framework
⎯ Corporacion Andina de Fomento (CAF) is a Latin American Development bank created in
the 1970s to promote a sustainable development model through credit operations, non-
reimbursable resources, and support in the technical and financial structuring of projects
in the public and private sectors.
⎯ The bank issued its €700 million debut social bond on London’s Main Market with an
annual yield of 1.625% and a maturity of 5 years on 27 May 2020.
⎯ CAFs’ social bond framework was created to fund emergency financing programs for its
member nations to deal with the coronavirus pandemic. The proceeds from the €700
million bond issuance will be used to provide financing for healthcare spending and
emergency economic support.
⎯ The Latin American development bank hired Crédit Agricole, BNP Paribas and Bank of
America to lead the transaction.
Corporacion Andina de FomentoIssues debut social bond to raise funds for its COVID-19 mitigation efforts
Distribution by Investor
Asset Managers 50%
Insurance/Pension Funds 35%
Central Banks 7%
Banks/Private Banks 6%
Others 2%
Geographical Distribution
Germany/Austria/Switzerland 27%
France 17%
Nordic 16%
UK 9%
Benelux 8%
Asia & Middles East 3%
Rest of Europe 20%
27
Issuance Details
Company Cassa Depositi e Prestiti
Rating -/BBB/BBB
SectorGovernment
Development Bank
Market Borsa Italiana
Transaction Details
Issue Date 15 April 2020
Issue Size€1 billion (€500mn, €500
mn)
Coupon 1.5%, 2.0%
Maturity 3 years, 7 years
Source: LSE, Bloomberg, Dealogic July 2020
CDP’s benchmark social bond wins €1.9 billion orderbook
“CDP will further support enterprises and
public administrations to foster their ability
to cope with the current crisis and recover.
The demand registered is proof of the
growing attention investors are paying to
initiatives of high social and environmental
impact and is a positive signal for Italy.“
Fabrizio Palermo – CEO, CDP
⎯ Cassa Depositi e Prestiti (CDP) issued its €1 billion dual tranche COVID-19 relief bond
on Borsa Italiana. The two €500 million tranches had respectively a 1.5% yield a 3-year
tenor and 2% yield and 7-year tenor.
⎯ CDP, a frequent issuer of sustainable bonds, will use the proceeds of this social bond in
line with their Green, Social and Sustainability Bond Framework, which also aligns with
a range of the UN's Sustainable Development Goals (SDGs)
⎯ The proceeds will be used to help sustain the recovery of the Italian economy and
communities following the impact of the coronavirus pandemic.
⎯ Banca IMI, BNP Paribas, Morgan Stanley, MPS Capital Services, Santander, Société
Générale and UniCredit lead the transaction.
Cassa Depositi e PrestitiIssues first social bond on Borsa Italiana in response to COVID-19
28
DCM Focus: Sovereign
Listings
2929
259Active bonds
listed in London
$2.8tnRaised by active
sovereign bonds
6Currencies
Source: London Stock Exchange, Bloomberg, Dealogic, July 2020
Leading market for sovereign issuanceA range of issuers and innovative products
Jan 2020
USD 750mn, 12 yr
EUR 1.27bn, 20yr
May 2020
USD 5.0bn, 40yr
Apr 2020
USD 3.0bn, 5yr
USD 3.0bn, 10yr
USD 4.0bn, 30yr
June 2020
USD 500mn, 6yr
USD 750mn, 11yr
April 2020
EUR 1.0bn, 6yr
EUR 1.0bn, 12yr
June 2020
EUR 500mn, 6yr
Jan 2020
EUR 1.0bn, 10yr
EUR 750mn, 30yr
Mar 2020
US 2.0bn, 2yr
Nov 2019
EUR 1.0bn, 30yr
May 2020
USD 1.25bn, 4yr
USD 1.75, 12yr
USD 2.0bn, 30yr
Feb 2020
USD 1.25bn, 7yr
USD 1.0bn, 15yr
USD 750mn, 41yr
Nov 2019
EUR 2.0bn, 6yr
EUR 1.0bn, 12yr
EUR 1.0bn, 20yr
May 2020
EUR 2.0bn, 7yr
Feb 2020
USD 1.25bn, 7yr
USD 1.0bn, 12yr
USD 7.75bn, 35yr
Oct 2019
EUR 500mn, 10yr
30
Issuance Details
Company Republic of Belarus
Rating B/B
Sector Sovereign
Market Main Market
Transaction Details
Issue Date 17 June 2020
Issue Size$500 million, $750
million
Coupon 5.875%, 6.378%
Maturity 6 years, 11 years
Source: London Stock Exchange, Bloomberg, Dealogic July 2020
Republic of Belarus issues $1.25 billion dual trancher“I am very glad that the Republic of Belarus at
this difficult time for the whole world found
support among investors and successfully
placed two new issues of sovereign
Eurobonds. It is doubly honourable that
securities have been listed on the world's
leading stock exchange platform. We hope that
cooperation between our country and the
London Stock Exchange will be continued. ”
Yury Seliverstov, Minister of Finance of the
Republic of Belarus
⎯ The Republic of Belarus issued its first ever $1.25 billion dual trancher on London Stock
Exchange’s Main Market in June 2020.
⎯ The 6 year bond issued $500 million with a coupon rate of 5.875% and the 11 year bond
issued $750 million with a coupon rate of 6.378%.
⎯ The government of the Republic of Belarus pursues a prudent fiscal policy supported by
conservative public debt management. Belarus has a strong track record of timely and
unconditional service of its debt obligations.
⎯ Citigroup, Raiffeisen Bank International and Societe Generale acted as bookrunners
while Renaissance Capital acted as the joint lead manager.
Republic of BelarusInaugural bond listing on the Main Market
31
DCM Focus: United Kingdom
32
Source: London Stock Exchange, June 2020
£139bn£118bn
£141bn£123bn
£190bn
137
90
141 136
182
H1 2016 H1 2017 H1 2018 H1 2019 H1 2020
Amount issued # of bonds
Surge in Listings by UK issuersAmount raised by bonds from UK issuers has grown 55% YoY
April 2020
USD 2bn, 0.50%, 3Y
April 2020
GBP 850mn, 0.0%, 5Y
June 2020
GBP 300mn, 1.88%, 42Y
April 2020
EUR 600mn, 1.25%, 5Y
EUR 500mn, 1.75%, 10Y
May 2020
EUR 750mn, 0.13%, 3YGBP 750mn, 1.25%, 8Y
GBP 750mn, 1.63%, 15Y
May 2020
USD 750mn, 1.38%, 5Y
USD 1bn, 2%, 10Y
USD 750m, 2.13%, 12Y
May 2020
GBP 375mn, 2.375%, 8Y
GBP 450mn, 3.0%, 17Y
April 2020
EUR 1 bn, 1.13%, 6YEUR 1 bn, 1.50%, 10Y
Listings by UK issuers on London Stock Exchange markets YoY Key Highlights
Sector Focus: UK Utilities
22
UK utilities bonds
listed YTD by 12
issuers
$7.4bn
Amount raised in
6 currencies
187%
Growth in amount
raised YoY. 83%
growth in bond #
33
Issuance Details
CompanySouthern Water Services
(Finance) Ltd.
Rating
(M/S&P/F)Baa3/BBB+/BBB+
Sector Utilities
Market Main Market
Transaction Details
Issue Date 20 May 2020
Issue Size £375 billion, £450 billion
Coupon 2.375%, 3%
Maturity 8 years, 17 years
Source: London Stock Exhange, Bloomberg, Dealogic May 2020
Southern Water Services roar through high grade market
⎯ Southern Water Services Finance Ltd. is a special purpose entity formed to raise capital for the
various business activities of Southern Water Investments Ltd.
⎯ On 20 May 2020, the company issued a dual tranche £825 billion sustainable bond on London
Stock Exchange’s Main Market.
⎯ The 8 year bond issued £375 billion with a coupon rate of 2.375% and the 17 year bond issued
£450 billion with a coupon rate of $3%.
⎯ Lloyds, NatWest and Santander acted as bookrunners for this deal, and the proceeds will be used
to finance projects set out in Southern Water’s Sustainable Financing Framework.
Southern Water ServicesWins strong demand for its dual tranche sustainable bond
Distribution by Investor
8yr 17yr
Fund Managers 84% 87%
Insurance/Pension Funds 10% 7%
Official Institutions 5% 5%
Other 1% 1%
Geographical Distribution
8yr 17yr
UK 94% 93%
Europe (ex. UK) 6% 7%
34
Where Can You Find Us
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Event Date Format
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Where You Can Find UsEvents Calendar Q3 and Q4 2020
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36
Your LSEG Team
Dr. Darko Hajdukovic
Head of Multi-Asset Primary Markets
and Investment Funds
+44 20 7797 3306
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Senior Associate, Business
Development
+44 20 7797 3750
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Manager, Product Development
+44 20 7797 1509
Product Development & Innovation
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38
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