Lars Jacob Braarud, Vice President Listing

Oslo Børs – NCMF 08.10.2014

Nordic Corporate Bonds – Oslo Børs

2

Oslo Børs milestones

1819: Christiania Børs – commodities and foreign exchange

1829: The exchange building opens

1881: Securities exchange: shares and bonds

1988: Electronic trade

1999: Trade desentralised – the brokers left the building

2001: Oslo Børs privatised

2007: Merged with VPS (the Norwegian CSD)

2009: The only independent exchange in the Nordics, strategic

and technological cooperation with the London Stock Exchange

European exchange groups

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An international exchange

• International rules and regulations

based on EU standards.

• Same trading platform as the London Stock

Exchange.

• Many international investment banks are

direct members.

• The Norwegian stock and bond markets are

both extremely efficient in terms of listing

process and capital-raising.

4

Leading market positions in certain sectors

5

Energy

2nd largest

in Europe (number of companies)

2nd largest

worldwide in

oil service (number of companies)

Shipping

Number 1

worldwide in marine

transportation (number of companies)

Seafood

Number 1 worldwide (number of companies and

market cap)

Oslo Børs: Products and market places

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Equities

ETF’s

ETN’s

Equities

Equity Certificates

ETF’s and ETN’s

Warrants

Derivatives

Bonds

BondsEquities

Market Data

Two marketplaces for bonds

• Regulated by the Stock Exchange Act and EU

rules

• Bonds traded since 1881

• 130 issuers / 600 loans / NOK 600 bn (ex. Government)

• IFRS financial reporting

• EEA prospectuses

• Organised and operated by Oslo Børs

• Established 2005

• 190 issuers / 1000 loans / NOK 400 bn

• No IFRS requirement

• Simplified prospectus requirements

Nordic ABM

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• Key factors - Nordic ABM

- Not required to prepare a full EEA prospectus or financial accounts in IFRS

- Issuers’ continuing obligations and market surveillance similar to regulated

market

- Denomination in SEK, DKK,EUR, USD and GBP is accepted

- Registration in Euroclear and VP Securities is accepted

Oslo Børs - sectors represented (bonds)

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34%

3%35%

5%

1%

21%

1% Government

Local governm. & guar.

Covered bonds

Bank & insurance

Mortgage banks

Industry

Perpetual Hybrid Tier 1

Based on volume 31.08.2014

Nordic ABM – sectors represented (bonds)

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68%

14%

3%

13%

1% 1%

Bank & Insurance

Covered bonds

Foreign

Industry

Local gov. & guar

Mortgage banks

Based on volume 31.08.2014

Nordic countries well represented

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• Examples Nordic issuers with bonds listed on Oslo Børs and Nordic ABM:

Access to bond capital (new loans + tap issues),

excluding government bonds (NOK bn)

12

83 9371 68 80

130105

180157 165 148

52 68

99

73 109

85 113 115

96

0

50

100

150

200

250

300

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Oslo Børs Nordic ABM

Pr.30.09.2014

Number of bonds listed per end of year

13

837 744612 534 510 486 496 545 603 640

30 182 350 507 558 666 715839

9671050

0

200

400

600

800

1000

1200

1400

1600

1800

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Oslo Børs Nordic ABM

Pr.30.09.2014

Number of new bonds listed per year

14

289

387 369

492553

396

0

100

200

300

400

500

600

2009 2010 2011 2012 2013 2014

Pr.30.09.2014

Market share of bonds in CSD (VPS)

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• High portion of bonds registered in Norwegian CSD (VPS) is listed

- Number of bonds: 67%

- Volume: 83%

Daily average traded volum – Oslo Børs and Nordic

ABM

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-

500

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1 500

2 000

2 500

3 000

3 500

4 000

4 500

jan

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sep

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no

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2

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sep

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Da

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(M

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Finance Corporate bonds

Lineær (Finance) Lineær (Corporate bonds)

Covered Bond Benchmark List

• Implemented 16. June 2014

• Purpose is to increase liquidity in covered

bonds

• Bonds must satisfy certain criteria, among

which:

- Amount outstanding of minimum NOK 2.5

billion

- Continuous pricing in the trading system

- Minimum 10 investors

- Cover pool must consist of Norwegian

residential loans

• 24 bonds issued by 5 issuers listed

representing NOK 161 billion

• Prices posted by 6 members

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Nibor - Norwegian InterBank Offerd Rate

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• As of December 2013 Nibor has been calculated by Oslo Børs on behalf of Finance Norway

• The six panel banks quotes Nibor in an interface commonly used for fixed income trading at

Oslo Børs.

• Nibor is distributed broadly by Oslo Børs’s marked data channels, and is now available in

many information vendor systems and trading applications.

• Indicative deposit rates are distributed during the day, Nibor is calculated at 12:00 CET.

• Nibor is surveillanced by Oslo Børs

• Find Nibor at: http://www.oslobors.no/ob_eng/markedsaktivitet/nibor

Selected Corporate Bond issues in Oslo

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Selected issues 2013/2014

Issuer MNOK

Statoil ASA 3,000

Genel Energy 3,000

Bluewater 2,400

Seadrill Ltd 1,800

Iona Energy 1,650

Harkand 1,380

Sterling Resources 1,350

Dof Subsea AS 1,300

IGas Energy PLC 1,100

Shamaran Petroleum 900

Salamander Energy 950

Xcite Energy 800

One of the world’s most efficient

High yield Bond markets

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Bloomberg News 20 Jan, 2014

Richest Scandinavian Nation Extends Its Junk Boom

Norway’s record

corporate debt binge last

year is set to continue as

the junk bond market in

Scandinavia’s richest

nation becomes a magnet

for companies seeking

ready cash

Marine Money – Public Debt Deal Of The Year

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