Debt Capital Markets Update Q1 2020

Download the update - Q1 2020

We are pleased to share LSEG’s Quarterly Debt Capital Markets (DCM) update for Q1 2020.The update provides a review of global DCM activity and key highlights from London Stock Exchange Group, including how we are responding to the impact of the Coronavirus (COVID-19) pandemic and how we can support your business during this uncertain time.

London Stock Exchange takes its responsibility to ensure the orderly functioning of markets and continuity of services very seriously. We have in place robust business continuity arrangements, which are regularly tested, to ensure the safe and orderly functioning of our business. London Stock Exchange continues to operate as normal and it is important that markets remain open to support companies who will continue to need access to capital and to ensure pricing is conducted in a fair and transparent manner for retail and institutional investors who need ongoing access to liquidity. You can find a note from Nikhil Rathi, CEO London Stock Exchange plc on our support for issuers here.

Highlights:

  • Global macro dynamics have been affected by Covid-19 with issuance volumes marginally decreasing compared to Q1 2019, despite a flurry of public sector and investment grade issuance from mid-March. Central Banks have reduced interest rates in an effort to stimulate the economy and increase liquidity.
  • Our response to the pandemic through our debt capital markets:
    • Social and sustainability bonds: London Stock Exchange has announced that it will be admitting social and sustainability bonds with use of proceeds aligned towards mitigating the impact of COVID-19 with no admission fees on its Sustainable Bond Market for an initial period of three months commencing 3 April 2020. You can find more information on eligibility criteria and why we feel social bonds are more relevant in today’s times here.
    • Market making obligations: we have relaxed spread and quoting obligations for gilts and corporate bonds on our order books to ensure the provision of liquidity by our market makers in volatile conditions.
  • Key transactions: In Q1 2020, London Stock Exchange saw deals from corporate, FIG, sovereign and supranational issuers, a total of $110bn has been raised by our global issuers through 437 bond issuances. International Securities Market (ISM) continues to grow, with 158 admitted bonds, raising £44.5bn for 58 issuers from across the world.
  • Launch of Spark Live: Spark Live, our new corporate digital presentation, is designed to give our issuer clients and partners the ability to offer live and on demand access to your financial results, capital markets days, analyst updates, AGMs and all the important moments in your corporate calendar, even if your team are in different locations. To find out more information download our briefing deck and contact issuerservices@lseg.com.
  • New Date for LSEG’s DCM Forum: In the interest of the health and well-being of our guests, we took the decision to delay our annual DCM conference from March to September. We now look forward to welcoming you for our flagship LSEG Debt Capital Markets Forum on Monday, 21 September 2020.

To find out more about London Stock Exchange's Debt Capital Markets you can contact the Fixed Income team at bonds@lseg.com or 0207 797 3921.