Irish Stock Exchange publishes review of 2017

The Irish Stock Exchange (ISE) has published its review of 2017, which shows another standout year of listings growth with total securities on the ISE’s markets now standing at over 36,700 securities.

  • A stellar year for the ISE…our landmark acquisition by Euronext is the start of a new chapter of greA stellar year for the ISE…our landmark acquisition by Euronext is the start of a new chapter of great opportunity” – ISE CEO, Deirdre Somers.
  • ISE ranked #1 for bond and investment fund listings worldwide with >36,700 securities listed.
  • World’s largest ever sukuk listing, sovereigns, green bonds, banks, European, Middle East, North and Latin American, Chinese corporates among 10k new debt listings.
  • €5.1bn equity funds raised including AIB, the largest IPO in Europe in 2017.
  • 12 new companies start oversubscribed ISE’s #IPOready leadership programme
  • ISEQ rises by 8% and equity turnover records sixth consecutive year of growthat opportunity” – ISE CEO, Deirdre Somers 

The ISE is ranked #1 for new and total bond listings and #1 for investment fund listings among exchanges worldwide with 90 countries represented on its markets. With three initial public offerings (IPOs) in 2017, AIB, Glenveagh Properties and Greencoat Renewables and the admission of Cairn Homes; turnover in equity markets recorded their sixth successive year of growth.

Deirdre Somers, Irish Stock Exchange CEO, said:

“It has been a stellar year for the ISE. For the first time we have over 30,000 debt securities listed and we are the #1 exchange in the world for new and total bond listings as well as investment funds at the end of 2017. We were home to the largest IPO in Europe with the listing of AIB, which raised €3.4bn for the Irish Government. This along with the IPOs of Greencoat Renewables and Glenveagh Properties and the admission of Cairn Homes contributed to turnover growth in our equity markets for the sixth successive year.

“Our landmark acquisition by Euronext is the start of a new chapter of great opportunity. Euronext is highly complementary to the ISE. Our role as the group centre of excellence for listing debt, funds and exchange traded funds (ETFs) within their federal model and the development of innovative services for equity issuers and SMEs is hugely exciting for our future. We look forward to leveraging Euronext’s technology, support and services to enable us to achieve our growth ambitions.”

Exceptional bond listings performance sees ISE rank #1 for bond listings worldwide and attract >10k new bond listings

The ISE had an exceptional year for bond listings attracting 10,360 new bond listings, a 53% increase on 2016 statistics (6,777), and finished the year with 31,390 total debt listings (2016: 29,025). Statistics from the World Federation of Stock Exchanges (WFE) released in December 2017 show that the ISE was ranked the #1 exchange worldwide for bond listings and also led the world in terms of total new listings in 2017.

Year-end figures show the ISE’s two bond markets, the Main Securities Market (MSM) and the Global Exchange Market (GEM) have listings from some 4,000 issuers from 90 countries around the world.

World’s largest ever sukuk listing, sovereigns, green bonds, banks, European, Middle East, North and Latin American, Chinese corporates among new debt listings

Highlights from 2017 debt listings were:

  • Sovereigns - The Kingdom of Saudi Arabia, through KSA Sukuk Limited, listed the world's largest ever sukuk issuance through two listings totaling US$9 billion. Also listing on the ISE’s MSM were the Republic of Iraq, The State of Kuwait and the Government and Sultanate of Oman.
  • Green bonds – The ISE consolidated its position as a leading venue for green bond listings in 2017 attracting listings from around the globe including the manager of the largest hydropower project in the world, China Three Gorges Corporation, (€650m bond); Europe’s third and the world’s sixth largest water company, FCC Aqualia, (€1.35bn bond); Chilean energy services provider, Celeo Redes Operación Chile, ($379m bond) and Societá Metropolitana Acque Torino, a water resource services provider based in Italy (€135m bond).
  • Banks – Sainsbury’s Bank plc, the UK’s first supermarket bank, listed £175m notes on the GEM. Banks listing on the MSM were the Norwegian credit institution, Eika Boligkreditt AS,  which listed €500m covered notes; Banca Sistema, the Italian specialist bank; Odeabank from Turkey; one of Brazil’s largest banks, Banco Votorantim; Portuguese-based Caixa Económica Montepio Geral;  Kuwait’s Warba Bank and Al Ahli Bank of Kuwait and the African regional financial institution,  Eastern and Southern African Trade and Development Bank, which issued $700m notes from its US$1bn Euro Medium Term Note (MTN) programme.
     
  • European issuers – Among the European issuers in 2017 were:
    • Ryanair, the largest airline in Europe, which listed a €750m bond from its existing Euro MTN programme.
    • Spanish giant, Prosegur Cash, the global provider of logistic services, cash management and outsourcing services, which listed €600m notes from its €1.5bn EMTN programme.
    • Ferrovial Netherlands, part of the Spanish-listed multinational, Ferrovial, a global operator of services and infrastructure, which listed €500m in fixed rate debt.
    • Nokia Corporation, the Finnish multinational, which listed €1.25bn in debt securities.
    • Superstrada Pedemontana Veneta which listed €1.571bn in notes to fund construction and operation of toll roads in the northeast of Italy.
    • RSA Insurance Group plc, the British multinational general insurance company, which listed two bonds.
       
  • North & Latin American issuers – the ISE provided access to European investors to a range of corporates from the Americas including:
    • the Ontario Teachers’ Finance Trust, a subsidiary of Canada’s largest single professional pension plan, the Ontario Teachers’ Pension Plan Board, which listed US$1.75bn fixed rate notes on the GEM in October.
    • American corporates and NYSE-listed, Parker-Hannifin Corporation, the global leader in motion and control technologies and Colfax Corporation, an S&P 500 manufacturing and industrial company, which between them listed more than €1bn in bonds.
    • Citibank which issued a new Peruvian Global Depositary Note linked to Fondo MIVIVIENDA, a State-owned company involved in the promoting and financing of the acquisition, improvement and construction of homes in Peru. 
    • Axtel, the Mexican telecommunications company, which listed $500m notes.
       
  • Chinese issuers – in addition to the China Three Gorges bond, Chinese corporates listing bonds on GEM included Bright Food Singapore Holdings, part of diversified food group Bright Food Group, which operates in various markets across the Asia Pacific region, and Shougang Group, which manufactures iron and steel products. Chinese State-owned enterprises JIC Zhixin Limited, owned by China Jianyin Investment Limited (JIC) and Huarong Universe Investment, a subsidiary of China Huarong Asset Management Co. also listed bonds on GEM.
     
  • Middle East issuers – The ISE was home to one of the largest non-sovereign bonds in the history of the Middle East when a subsidiary of the Abu Dhabi National Oil Company (ADNOC) Group, listed a $3bn bond on the GEM. It was also the venue of choice for the world's largest ever, publically listed Shariah-compliant real estate investment trust (REIT) when Emirates REIT (CEIC) Limited, listed its inaugural $400 million issuance on the MSM. Also attracted to the ISE’s bond markets were Qatar Reinsurance Company Limited, the global multi-line reinsurer, which listed $450m notes on the MSM.

€5.1bn equity funds raised including AIB IPO, the largest IPO in Europe in 2017

  • Allied Irish Banks plc, Ireland’s largest bank, raised €3.4bn for the State in the largest IPO in Europe and EMEA in 2017.
  • Greencoat Renewables plc, the Irish renewable energy company, raised €270 million through its IPO in July on the Enterprise Securities Market.
  • Homebuilder Glenveagh Properties PLC raised €550m in its IPO in October when it took a primary listing on the MSM.
  • Cairn Homes plc also took a primary listing on the MSM during July.
  • Overall ISE-listed companies raised €5.1bn in equity funds from international investors during 2017.

ISE retains position as #1 exchange for funds listing in the world

The ISE attracted 917 new fund classes during the year and had 5,310 fund and ETF securities listed at the end of the 2017 ensuring it retained its position as the #1 exchange in the world for listing investment funds and ETFs.

In April, Fidelity International chose the ISE’s MSM as the primary listing venue when it launched its first European ETFs. In addition, new ETFs were issued by JP Morgan, BMO, First Trust, UBS, and Van Eck. Other new funds came from international asset managers such as LGT, Pimco, PGIM, Barings, Marlborough International, Neuberger Berman, BNY Mellon and ICG.

12 new companies start oversubscribed ISE’s #IPOready leadership programme

  • 12 high-growth ambitious companies from technology, financial services, medtech and engineering sectors across the island of Ireland commenced the ISE’s 2017 #IPOready programme in September.
  • 24 CEOs, CFOs and COOs from companies selected to participate include ATA Group, Atlantic Therapeutics, Crest Solutions, Devenish Nutrition, Finance Ireland, O’Reilly Group, PFH Technology Group, PMD Solutions, Rubicoin, Stamford Devices, Taoglas and Zevas.
  • The ISE’s 15-month leadership programme provides participants with skills in raising strategic finance, investor relations, executive leadership and management required for a successful IPO.

ISE to be acquired by Euronext subject to regulatory approvals

  • In November it was announced that Euronext is to acquire the ISE. The transaction creates a leading global player in debt and fund listings combining the listing expertise of the ISE with the traded markets’ expertise of Euronext.
  • The ISE is to be positioned as a centre of excellence for the group in the listing of debt, funds and ETFs.
  • The combination will provide enhanced services to ISE-listed companies and benefit the further development of the Irish capital markets ecosystem within a European context and as part of Euronext’s core mission to power the real economy.
  • Closing is expected in Q1 2018, subject to regulatory approvals.

ISEQ rises by 8% and equity turnover records sixth consecutive year of growth

  • The ISEQ rose by 8% during 2017 and finished the year at 7,038.
  • Equity turnover grew by 9.9% and totalled €98.3bn for the year, the sixth consecutive year of growth in activity.
  • The number of equity trades remained largely unchanged at 6.6m while market capitalisation rose by 7.2% to €126.8bn (2016: €118.3bn).

Government raises €19bn from international investors

  • During 2017 the National Treasury Management Agency (NTMA) increased the amount of Irish Government securities in issue by raising €19bn (2016: €10.35bn) from international investors.
  • Turnover in Irish Government bond markets stood at €172bn at year end, a decrease of 16.4% on 2016 activity (€205bn) which was also reflected in a drop in trade numbers.
  • Market capitalisation rose by 5.6% to €126bn (2016: €119bn).

Other highlights from 2017

  • The ISE has long advocated for the purchase of shares in Irish companies to be exempted from 1% stamp duty to support enterprise investment. A significant development in 2017 was the implementation of the promised exemption from stamp duty of Irish companies listed on the ISE’s Enterprise Securities Market which took effect from 5 June. A second milestone was the Government’s public consultation on stamp duty applied to transactions in Irish shares in September as part of its commitment to “Getting Ireland Brexit Ready”.
  • The ISE continues to be recognised as a Great Place to Work® (GPtW) and was named the #2 Best Medium Workplace in Ireland at the GPtW Awards and the top placed Irish SME workplace in Europe at the GPtW European Awards during 2017.
  • The ISE migrated its equity trading platform ISE Xetra® to T7, the trading technology which it uses under its existing strategic partnership with Deutchse Börse. This enabled a new ultrafast high-performance data feed to be launched on all ISE-listed equity and ETF instruments in October.

Article Published: 16/01/2018