Debt Capital Markets update Q3 2020

Download the update - Q3

We are pleased to share LSEG’s Debt Capital Markets (DCM) update for Q3 2020. The update provides an overview of global DCM activity and key highlights from London Stock Exchange, including key DCM transactions and LSEG initiative and engagement with the global financial community.

Highlights:

  • Global macro dynamics continue to remain conducive for new issuances. Global issuance volumes for Q1-Q3 2020 has exceed issuance volume of Q1-Q3 2019, with a spike of activity in March and April 2020, led by supranationals, governments and investment grade corporates. Central Banks have kept interest rates at record lows to stimulate the economy and Benchmark 10Y bond yields remaining at all-time low.
  • Issuance volume: 2020 YTD, London Stock Exchange saw a high number of deals from corporate, FIG, sovereign and supranational issuers globally, raising a total of $532bn through 653 bonds. International Securities Market (ISM) continues to grow, now with 189 admitted bonds, raising £54.8bn from 64 issuers from across the world.
  • Sustainable Bond Market Advisory Group: In July 2020, London Stock Exchange launched its Sustainable Bond Market Advisory Group (SBMAG), a forum for market participants to provide input on London Stock Exchange’s Sustainable Bond Market and act as a consultative body on future developments in the sustainable field. This initiative is part of London Stock Exchange’s continued commitment to support companies and investors seeking to raise capital and manage risk associated with the transition to a low carbon economy. You can find more information on participants and membership here.
  • The international hub for green, social and sustainability listings: In Q3 2020 we have seen landmark issuances such as Mexico’s €750mn debut sustainable bond, the first green bond out of Qatar with Qatar National Bank’s $600mn green bond and Burberry’s fixed income debut with a £300mn sustainable bond among others.
  • Thought leadership: The Fixed Income team has been active in Q3, hosting its virtual flagship Debt Capital Markets conference (Debt Capital Markets Forum) and webinars on  the International Securities Market, LSEG Flow, LIBOR. We have also published articles on Green and sustainability-linked finance and attended panels, including GFC Media – ESG & Capital Markets Africa.
  • Driving Innovation: London Stock Exchange, in partnership with Nivaura, launched its flagship automated product LSEG Flow in September, an innovative end-to-end platform designed to automate the DCM process. LSEG Flow simplifies, accelerates and reduces the costs associated with raising capital on the debt primary markets. In early September London Stock Exchange hosted its first webinar to introduce the product (LSEG Flow), which was well received by the global financial community. 
  • Upcoming events: London Stock Exchange’s DCM team is delighted to take part in several upcoming virtual events including Environmental Finance - Green Bonds Europe virtual conference (12-13 Nov), Bonds, Loans & Sukuk Africa Virtual (24-25 Oct) and Bonds, Loans & Sukuk Middle East Virtual (8-9 Dec).

To find out more about London Stock Exchange's Debt Capital Markets you can contact the Fixed Income team at bonds@lseg.com or +44 (0)207 797 3921.

More recent

Supporting issuers with ESG data

ESG data and disclosure: a new tool for issuers

The number and scale of investors demanding greater disclosure of ESG-related data and integrating ESG into their capital allocation decision making continues to gather pace around the world.

The BlackRock Global Client Sustainable Investing Survey[1] indicated that investors plan to

Learn more
London prepares for India’s highly anticipated Overseas Listing Policy

The landscape of IPO opportunities for ambitious, growth-hungry Indian companies is set to change dramatically once India’s forthcoming Direct Overseas Listing Policy is introduced.

This new policy will allow Indian incorporated companies to list on select overseas stock exchanges by issuing their common equity shares to overs

Learn more
Going direct: a Wise decision

Not every listing on the public markets has the aim of raising fresh capital. For fast-growing international technology company Wise, its Direct Listing on the Main Market of London Stock Exchange provides a way to broaden its ownership while remaining focused on its mission. Co-founder and CEO Kristo Käärmann explains their novel thinking and approach.

Learn more
Growth in tech, sustainable finance and diverse boards define London’s first half performance

The depth and level of support provided by London’s markets to the rapidly evolving capital needs of issuers and investors in the global economy was vividly underlined in a strong and active first half performance in 2021.

Learn more