'Convertibles' lead a buoyant half-year for the CISE

Tuesday, 18 Aug 2015

Convertible bonds were prominent among the 203 newly listed securities on the Channel Islands Securities Exchange (CISE) during the first half of 2015.

The number of new listings is up 14.7% on the same time last year and takes the total number of listed securities on the CISE to 2226 at the end of June 2015.

Fiona Le Poidevin, Chief Executive Officer of the CISE, said: “It has been a strong start to the year for the CISE and it is especially encouraging that we have developed a new pipeline of business in convertible bonds.

“Corporates are increasingly choosing to raise fresh investment by issuing convertible bonds, which can later be converted into equity, rather than diluting their share capital. Many of these firms will have their trading companies listed on another exchange, such as the London Main Market. However, they will choose to list convertible bonds on the CISE due to the fact that we have wide international recognitions whilst being competitive on cost and responsive to client needs.

“A number of groups have now also given us repeat business, which is testament to the positive experience received when listing on the CISE.”

One of the notable listings on the CISE during the first six months of 2015 was a closed-ended fund from Russian private equity specialist Baring Vostok, which currently has more than $3.7 billion of committed capital for private equity investments in Russia and the surrounding region.

During the first six months of 2015, the market capitalisation of the CISE has grown by £26.9 billion (9.1%) to reach £322.2 billion at the end of June.

Ms Le Poidevin added: “During the first half of the year the listings team has been busy with applications and we have also opened our office in Jersey. This month, the Guernsey office has moved to new, larger premises and we will also be stepping up our marketing activity so it is a very exciting time for the CISE.

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