Irish Stock Exchange publishes review of 2016

  • ISE bond listings grow by 7% to reach over 29,000 debt securities

  • ISE attracts 1,041 new fund listings retaining #1 position for funds listing globally

  • New equity listings from Venn Life Sciences, Draper Esprit and Dalata Hotel Group

  • 11 listed companies raise €513m from international investors

  • Equity trading reaches record levels with 6.6m transactions during the year (+17.4%)

  • #IPOready companies graduate from ISE leadership programme

The Irish Stock Exchange (ISE) has published its review of 2016 which shows a growth in listings to over 35,000 securities on the ISE’s markets. The ISE now ranks #1 for investment fund issuers and #2 for listing bonds worldwide with listings from 85 countries around the globe. Trading statistics also show that equity market activity reached record levels in what was a volatile year for global capital markets.

“Our core businesses performed well in 2016" - Deirdre Somers, ISE CEO

Deirdre Somers, Irish Stock Exchange, CEO said: “Our core businesses performed well in 2016. Our bond listing figures grew by over 7% to over 29,000 debt securities. We are considered by international investment managers to be the global centre of choice for fund listing and launched two new services for funds. Trading activity was strong and we continue to be the leading liquidity pool for Irish shares despite competition from across Europe.

“We are delighted with the success we achieved from our inaugural #IPOready programme and we are looking forward to welcoming ambitious companies to #IPOready 2017. We anticipate that our business will continue to expand in 2017 and look forward to commencing work on our landmark new headquarters which will facilitate this growth. While Brexit has created considerable uncertainty, it has also created significant opportunities for the ISE and the wider Irish financial services industry. We are confident that the ISE is entering 2017 in a strong position to make the most of these opportunities.”

ISE bond listings grow by 7% to reach over 29,000 debt listings

The ISE is among the leading centres globally for listing bonds with statistics showing debt listings growing by over 7% to reach over 29,000 securities at year end. The ISE is now placed at #2 among global exchanges according to rankings released by the World Federation of Exchanges (WFE) in early December.

Multinationals, sovereigns and financial institutions from all continents were among the new listings of 6,777 bonds and other debt instruments in 2016 on the Global Exchange Market (GEM) and Main Securities Market (MSM) - the ISE’s two debt markets.

GEM bond listings reach over 10,000 for the first time

The ISE’s GEM market continued to grow strongly with over 10,000 debt securities listed at the end of 2016. Among the listing highlights were:

  • Multinationals - Whirlpool Finance Luxembourg, a subsidiary of USA-based Whirlpool Corporation, which listed €500m in senior notes; Vodafone Group plc, the worldwide telecommunications provider, which listed three bonds totalling Stg£3.48bn and Valeant Pharmaceuticals, the international speciality pharmaceutical and medical device company, which listed a €1.5bn bond.
  • Banks - Coöperatieve Rabobank, the Dutch-based international financial products and services provider, which listed a €1.25bn Additional Tier 1 (AT1) bond and Bankinter, the Spanish commercial and personal banking group quoted on the Madrid Stock Exchange, which listed €200m Tier 1 preferred securities.
  • A range of Canadian-based issuers – CPPIB Capital Inc, the capital markets financing subsidiary of Canada Pension Plan Investment Board, which listed a US$2bn notes under its C$25bn debt issuance programme; Entertainment One, the multinational entertainment and media distribution company, which listed a stg£285m bond; the global retailer, Alimentation Couche-Tard, which listed two bonds for NOK 675m and €750m; and Cott Corporation, one of the world’s largest producers of beverages on behalf of retailers, brand owners and distributors, which raised €450m in a bond listing.
  • A number of Latin American-based corporates - CLISA, a leading Argentinian infrastructure manager and developer, which became the first company from Argentina to list bonds on the ISE when it raised US$200m from international investors and Sigma Alimentos, the Mexican chilled food producer and distributor, which listed a US$1bn bond.

Irish Stock Exchange year in review 2016 debt listing map

MSM debt listings total 18,365 and attract the first ever bond listing from Saudi Arabia

At year end the total debt listings on the MSM stood at 18,365. Notable listings included:

  • Sovereigns - The first ever sovereign bonds from the Kingdom of Saudi Arabia totalling US$17.5 billion were listed on the ISE. The Government of the Sultanate of Oman raised US$4bn through two bond listings.
  • Ferrari, Italy’s luxury car manufacturer, which listed a €500m bond.
  • Sacyr, the global infrastructures and services company, headquartered in Madrid which listed a number of securities from its €300m European commercial paper (ECP) programme.
  • Banks - Banco de Sabadell, the fourth largest privately-owned banking group in Spain, which listed a €500m debt security; Sparebanken, the Norwegian savings bank, which listed a €500m covered note and Banco Santander-Chile, a provider of commercial and retail banking services in the Chilean market, which listed several bonds under its $5bn MTN programme.

ISE attracts 1,041 new fund listings retaining #1 position for funds listing globally

  • The WFE statistics released in December also show that the ISE is the #1 centre for listing investment funds globally with 1,041 new fund classes admitted in 2016.
  • New listings came from leading international fund managers such as Tideway Investment Partners, Pimco, Polaris Capital Management, LCM Partners and Partners Group.  ETF launch activity continues to be strong with new launches from issuers such as Vanguard, First Trust, UBS, Source, BMO, Deutsche Bank and WisdomTree.

New equity listings from Venn Life Sciences, Draper Esprit and Dalata Hotel Group and 11 listed companies raise €513m from international investors

  • Venn Life Sciences, the growing Contract Research Organisation (CRO), joined the ESM in January taking advantage of the ESM’s dual-listing facility with AIM to attract Eurozone investors.
  • Draper Esprit plc, the venture capital investor focused on long term investment (patient capital) in digital technologies raised €102m from its initial public Offering (IPO) in June.
  • Dalata Hotel Group, the largest hotel operator in Ireland, transferred its listing from the ESM to a primary listing on the MSM in June.
  • Overall 11 companies trading on ISE raised €513m in equity funds from international investors during 2016.

Orla O'Gorman Head of Equities ISE Padraic O'Connor Chairman ISE Tony Richardson CEO Venn Life Sciences and Jonathan Hartshorn CFO Venn Life Sciences for

(L-R) Orla O'Gorman Head of Equities ISE, Padraic O'Connor Chairman ISE, Tony Richardson CEO Venn Life Sciences and Jonathan Hartshorn CFO Venn Life Sciences 

Equity trading reaches record levels with 6.6m transactions during the year

  • The number of equity trades increased by 17.4% to 6.6m (2015: 5.6m), the first time trading has reached over 6m trades and the sixth consecutive year of growth in trade numbers. 
  • Market turnover rose by 6.3% to €89bn (2015:€84bn), the fifth year in a row to witness increased equity activity.
  • The ISEQ fell 4% in 2016 and stood at 6,517 as the year closed.

Government raises €10.35bn and issues first ever 100-year bond

  • During 2016 the National Treasury Management Agency (NTMA) issued €10.35bn (2015: €14.5bn) in Irish Government securities including the Irish State’s first ever 100-year bond in a €100m fundraising which offered global investors a 2.35% yield.
  • Activity in the Irish Government bond market showed turnover at €205bn, a fall of 16.3% on 2015 levels (€245bn). Trades stood at 53.5k (2015: 66.6k) and market capitalisation remained at €119bn, the same level as 2015.

#IPOready companies graduate from ISE leadership programme

(L-R) Justin Keatinge, CEO, Version 1, Orla O'Gorman, Head of Equity, ISE, Karl Flannery, CEO, Storm Technology, Eoin Goulding, CEO, Integrity 360 at the graduation of IPOready

(L-R) Justin Keatinge, CEO Version 1, Orla O'Gorman, Head of Equity ISE, Karl Flannery, CEO Storm Technology, Eoin Goulding, CEO Integrity 360 at the graduation of #IPOready

Fund offering expands with new GEM market and ISEFundHub services to Irish domiciled funds

  • The Global Exchange Market (GEM) extended its services to include the listing of investment funds in April providing investment managers with a choice of two markets when listing funds on the ISE – the MSM and GEM. 
  • Also in April, the ISE expanded its offering on ISEFundHub, to all Irish-domiciled investment funds in addition to ISE-listed funds. ISEFundHub is a data portal for funds which provides access to key fund information such as net asset values (NAVs), fund documents, analytics and peer comparisons. Launched in late 2014, there are now over 1,400 registered professional investors using the website, which was upgraded in November 2016.

Other highlights from 2016

  • The ISE renewed its strategic technology partnership with Deutsche Börse and extended its use of its trading infrastructure and related services in January 2016. The new contract runs for six years until the end of 2021.
  • The ISE welcomed the announcement by Government to review stamp duty on Irish shares as part of its response to Brexit. The review announced on Budget day will take place in 2017.
  • The ISE continues to be recognised as one of the best places to work in Europe. It achieved the #1 Medium Workplace in Ireland and was placed 14th in Europe at the Great Place to Work Awards 2016 making it the top ranking European financial services company.
  • Applegreen, the #1 motorway service operator in Ireland, which listed on the ISE in 2015, won the prestigious Star of 2016 at the European Small and Mid-Cap Awards. Newly-listed companies throughout Europe and their exchanges compete for this accolade which is awarded to a company which demonstrates exceptional leadership and potential for growth.
  • Dan Gallagher, former Commissioner of the US Securities and Exchange Commission (SEC), joined the ISE Board as a Non-Executive Director in February.

Download the ISE 2016 year in review infographic