Feb 21, 2024
KEY TAKEAWAYS:
Offering six international stock exchanges and listing bonds of all types, our listing agents highlight emerging trends across capital markets products such as CLOs, ESG bonds, REITs and cat bonds.
It’s an exciting time for our listings teams as favourable market conditions entice issuers to the capital markets, with a listing of bonds enhancing the marketability of those bonds and widening the potential investor net.
Please get in touch with your usual Walkers contact or any of the individuals listed below if you’d like to hear more.
Euronext Dublin
Investor optimism is on the rise as pricing stays attractive, encouraging a resurgence in fund-raising, particularly among major banks and corporates. We’ve noticed an uptick in green and sustainability-linked bonds – everyone from UAE banks to Nordic commercial enterprises are embracing this trend, whether as standalone deals or issuances under established MTN programmes. Euronext is now the world's leading venue for ESG bond listings, with many issuers enhancing their ESG profile via Euronext's ESG platform.
On the securitisation front, Collateralised Loan Obligations (CLOs) are taking centre stage, where Euro and U.S. CLO bonds are listing at CLO phase, alongside warehouse phase listings. We've also experienced strong demand for RMBS products, a trend which is already keeping us busy in early 2024.
Wiener Börse – Vienna MTF
There has been a remarkable surge in Euro CLO warehouse phase transactions, reflecting a robust growth trajectory in this space. Repack programs and trades have also found an efficient listing platform within Vienna MTF, and this segment continues to experience steady growth. Major banks have embraced this avenue, displaying the exchange's capability to facilitate streamlined listing processes.
Private equity houses are also turning to Vienna MTF, specifically for issuing convertible bonds, with a focus on optimising efficiency in their transactions.
TISE
TISE recently reported that 2023 saw a record number of new bond issuances on its public market, despite rapidly rising interest rates, high inflation and geopolitical conditions. There was a strong flow of private equity-backed debt security listings, with a notable trend of either refinancing debt or acquisitions in the technology sector, renewable energy and sustainable industries.
The high-yield bond market recovered from a lacklustre year in 2022; the first half of 2023 was stronger than the second. So far this year we continue to see a flow of requests to list high-yield bonds from US, European and UK issuers. TISE is still very much a listing venue of choice to list securitisation vehicles, which include major deals from prominent international banks.
TISE has maintained its position as the second largest venue for listed UK REITs and has grown its market share to more than 45%. We're also seeing a notable uptick in enquiries to list REITs coming through the door already this year.
Cayman Islands Stock Exchange
The recent removal of the Cayman Islands from the EU’s AML list, has resulted in renewed interest for listings on the Cayman Islands Stock Exchange. We anticipate more EU entities resuming listings now any uncertainty has cleared. The removal has also culminated in the welcome return of Cayman as the preferred jurisdiction of choice for US CLOs – that return, alongside a recent resurgence in CLO activity, has resulted in a pronounced increase in recent listings on the Cayman Islands Stock Exchange, both by class and somewhat notably across the entire note stack.
Private equity houses are also seizing the opportunity to list bespoke transactions, catering to private investors’ fundraising needs in a turbulent macroeconomic environment.
Bermuda Stock Exchange
Routine debt listings remain a cornerstone of the BSX's offerings, with a steady flow of transactions continuing to support its growth. The BSX is a market leader for catastrophe bond transactions and 2023 saw a record year with the cat-bond market, so it’s unsurprising to note an increase in this type of work.
A significant departure from the norm is the increasing number of foreign issuers choosing Bermuda as their listing destination of choice. We're also seeing clients consider equity listings within the mezzanine market, driven by investor appetite for Bermuda-based companies.
Luxembourg Stock Exchange
LuxSE maintains its status as an attractive listing venue for corporate issuers. 2023 experienced noticeable growth in both the number of bonds admitted to listing and the number of new corporate issuers listing bonds. It also comes as no surprise, given current international trends, that green bonds and sustainability-linked bonds represented 17% of the total issued amount listed on LuxSE in 2023.
LuxSE is also actively embracing technological advancements in the financial industry. The exchange is set to become a hub for blockchain and fintech securities, and we’re excited to see developments in this space.
Partner/Bermuda
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