Eight reasons to join Poland s Capital Market

Transcription

1 Warsaw Capital Market Summit 2014 Eight reasons to join Poland s Capital Market Warsaw, October 2014

2 Visit Warsaw Capital Market Summit 2014 to learn more about Poland s capital market opportunities Warsaw Capital Market Summit (previously IPO Summit) which takes place on 23 rd and 24 th October is a major conference for international investors and companies seeking growth capital in Central and Eastern Europe. The Summit is organised by the Ministry of Treasury Republic of Poland, the Warsaw Stock Exchange and the Central Securities Depository of Poland (KDPW), supported by Partners global and regional financial, legal and advisory firms, and the City of Warsaw. The conference serves as a platform for top level debates about investment and capital raising opportunities, and has become a natural forum for global experts and decision makers to meet and shape the international capital market. Find out more about investments and capital raising opportunities in Poland s capital market by attending WCMS Organisers: Strategic Partners: Partners: Supporting Partners: PMS 383C PMS 7406C PMS 187C Warsaw Capital Market Summit

3 Welcome to Poland the biggest and strongest economy in the CEE region With a population of 38.5 million and GDP of EUR 382 billion, Poland is the largest economy in Central and Eastern Europe. Since the early 1990s it has continuously been one of the fastest growing and most stable markets in the Western World. In the last twenty years, it has not experienced recession and continued to demonstrate growth even during the recent global financial crisis. Since 2008, Poland s cumulative GDP growth amounted to 20%. 1 Find out eight reasons to join Poland s Capital Market Poland also belongs to one of Europe s most stable group of countries as far as public finances are concerned. This is demonstrated by the relatively low public debt to GDP ratio, which was 53.9% at the end of Poland also has a strong and healthy banking system, with a solvency ratio of 15.6%, an increasing value of own funds at EUR 33 billion and a Tier 1 ratio of 14.1%. 3 According to the EY European Attractiveness Survey 2014, Poland was again voted most attractive CEE country for new investments. Poland recorded 107 projects in 2013 and a six percent increase in jobs created by foreign direct investments. The country s key strengths include a stable macroeconomy, a well qualified and highly productive labour force, a business friendly climate, as well as a transparent tax and legal system. 4 1 Source: Ministry of Finance of Poland 3 Source: Polish Financial Supervision Authority, Q data 2 Source: Ministry of Finance of Poland 4 Source: EY European Attractiveness Survey

4 Warsaw the CEE s financial centre & business hub 1. Whether you are an investor looking for optimal investment opportunities or a corporate manager seeking growth capital for your business Poland s capital market is the right place for you. With the Warsaw Stock Exchange (WSE) and the Central Securities Depository of Poland (KDPW) as the market s key institutions, Warsaw is now one of the most rapidly growing and internationally expanding European financial markets, attracting both international issuers and global investors Poland has the largest equity market in Central and Eastern Europe. Its leading position in the CEE region is well-illustrated by the Warsaw Stock Exchange key performance indicators. In H1 2014, it had a market capitalisation of EUR billion and equity turnover of EUR 25.7 billion the highest in the region. With over 3.7 million stock index futures traded in H1 2014, the WSE remained fifth among European exchanges. You will find in Poland a versatile capital market, offering a wide range of instruments and a comprehensive trading, clearing and settlement infrastructure. You will also find it foreign investor and issuer friendly with one of the most international trading floors and clearing houses in the CEE region. This all makes Warsaw a leading listing venue in Europe both for domestic and foreign companies. 148,2 Domestic market capitalisation as of June EUR billion. Equity trading turnover January- June EUR billion. 89,9 25,7 70,1 16,0 12,3 23,5 18,3 13,3 6,5 3,5 2,9 0,5 0,2 Warsaw Vienna Athens Prague Bucharest Budapest Ljubliana Warsaw Vienna Athens Prague Bucharest Budapest Ljubliana Source: FESE Warsaw Capital Market Summit

5 Warsaw the leading listing venue in Europe 2. With a modern stock exchange offering a wide and comprehensive range of instruments and operating a state-of-the-art trading system, complemented with clearing and settlement infrastructure, Poland s capital market serves as the growth engine for European businesses. The Warsaw Stock Exchange has gained a reputation as the leading listing venue for companies from Central and Eastern Europe and beyond. As of June 2014, a total of 59 foreign companies were listed on the WSE. Since 2011, 29 foreign companies have decided to list on the WSE. Number of foreign companies listed on the WSE June 2014 data Main Market NewConnect Total June 2014 Countries of origin of the 59 international companies listed on the WSE include: Austria, Bulgaria, Canada, Cyprus, Czech Republic, Estonia, France, Germany, Hungary, Israel, Italy, Lithuania, Luxembourg, China, Slovakia, Slovenia, Spain, Sweden, Switzerland, The Netherlands, Ukraine, United Kingdom, USA. 5

6 A broad & diversified investor base 3. Poland s capital market successfully attracts various groups of investors. The strength of the Warsaw Stock Exchange lies in its diversified base which includes: foreign, individual and institutional investors. With the launch of the UTP trading system in April 2013, the Warsaw Stock Exchange has opened up to new groups of investors, including entities engaged in algorithmic trading. In H1 2014, foreign investors generated 49% of turnover on the Main Market, a steady share since Share of investors in trading on WSE H Foreign investors 36% 47% 47% 48% 47% 49% Individual investors 27% 19% 18% 18% 15% 13% Institutional investors 37% 34% 35% 34% 38% 38% Currently the number of securities accounts registered with the Central Securities Depository of Poland (KDPW) is over 1.5 million. Number of securities accounts in Poland H 2014 Source: KDPW Warsaw Capital Market Summit

7 A foreign investor & issuer friendly market 4. Poland s capital market is characterised by a large presence of foreign investors and issuers, making it the most international stock market in the CEE region. The Warsaw Stock Exchange has a diversified client base including Polish and foreign brokers. Remote membership gives foreign investors direct access to the WSE system without the need to be physically present in Poland. The WSE is also part of STFI network, allowing 1,500 institutions around the globe to access the market with ease. Domestic Remote Total Number of exchange members June 2014 Source: WSE The capital market s product offer is complemented by a continuously strengthened post-trade infrastructure: KDPW_CCP and KDPW, which maintains a total of 19 links with foreign depositories: 10 direct links and 9 indirect ones (via the international depositories: Clearstream Banking Luxembourg and Euroclear Bank). Operational links with foreign depositories August 2014 data. KDD, Slovenia UniCredit BulBank CDAD, Bulgaria CBF, Germany KELER, Hungary EVK, Estonia OeKB, Austria CDCP, Slovakia LCVPD, Lithuania LCD, Latvia Sibex Depositoru, Romania KDPW Clearstream Banking, Luxembourg Euroclear Bank Euroclear, France Euroclear, UK & IRL Euroclear, Sweden Euroclear, Netherlands DTCC, USA CDCP, Czech Rep. Monte Titoli, Italy CDS, Canada CDCP, Slovakia Euroclear, France Source: KDPW 7

8 WSE a versatile market with a wide range of instruments 5. The WSE offers trading in a wide range of securities and financial instruments, including: equities, derivatives (futures contracts, options), bonds, pre-emptive rights, investment certificates, structured instruments, exchange traded products (ETPs), exchange-traded funds (ETFs). The Warsaw Stock Exchange Group conducts trading on seven markets: The Main Market a regulated market trading equities and derivatives; NewConnect an alternative stock market for start-ups and developing companies; Derivatives Market; Catalyst a debt instruments market for municipal, corporate and mortgage bonds; Treasury BondSpot Poland a wholesale market for trading Treasury bills and bonds; Structured Instruments Market; and Commodities Market, operated by the Polish Power Exchange a platform for trading in electricity, property rights, CO 2 emission allowances and gas. In H1 2014, the turnover value on the WSE was EUR 25.7 billion for shares, and EUR 0.31 billion for bonds. The total volume of trading in derivatives was 5.4 million. Shares Options Debt instruments Futures Warsaw Stock Exchange Investment certificates Warrants ETFs Structured products The Warsaw Stock Exchange calculates and publishes 30 indices for both of its equity markets, including: 8 WSE indices, 11 sectorial sub-indices, 6 strategy indices, 3 national indices, and 2 indices on NewConnect. The WSE s main indices are: WIG30 for the largest and most liquid companies, WIG50 for medium-sized companies, and WIG250 for smaller businesses. Warsaw Capital Market Summit

9 State-of-the-art post-trade infrastructure 6. Poland has a state-of-the-art clearing and settlement infrastructure, provided by the Central Securities Depository of Poland (KDPW) and the KDPW_CCP clearing house. KDPW is responsible for the settlement of transactions concluded on the regulated market and on the alternative trading system (ATS), and for the operation of the central securities depository. Additionally, KDPW provides many services to issuers, including the processing of corporate actions, such as dividend payments to shareholders, assimilations, exchanges, conversions and share splits, and the execution of subscription rights. The kdpw_stream depository-settlement system performs the clearing and settlement of transactions in many financial instruments. The system was implemented in 2009 and is able to process up to 2 million transactions per day. A record number of transactions was processed on 7 May 2010: a total of , in connection with the IPO of PZU on the WSE. KDPW also offers trade repository services (KDPW_TR) that fully comply with EMIR requirements. KDPW_TR was registered by ESMA as one of the first four such institutions in the EU. ESMA registration allows KDPW_TR to operate across the European Union. KDPW_TR covers the reporting of all types of contracts subject to the reporting obligations (including exchange-traded and OTC derivatives). As the National Numbering Agency, KDPW also plays the role of pre-lou an entity authorised to assign Legal Entity Identifiers (LEI), necessary to report information to TR. The Central Securities Depository of Poland (KDPW) offers an automatic partial settlement functionality as of August 4, 2014 in order to optimise the trade settlement process. CCP Clearing Risk management Collateral management CSD Settlement Central Securities Depository Corporate actions Asset management Functionalities of KDPW_CCP (CCP) / KDPW (CSD) Source: KDPW Trade Repository 9

10 KDPW_CCP a modern clearing guarantee system 7. KDPW_CCP is a modern clearing house which clears transactions on the regulated market, the alternative trading system and OTC market, and operates a clearing guarantee system. KDPW_CCP is equipped to serve Polish and international financial institutions. By establishing a CCP on the Polish market, KDPW has implemented the highest international industry standards and has significantly strengthened the competitiveness of Poland s capital market. Seller Buyer Seller CCP as Buyer CCP as Seller Buyer Typical trade without CCP Source: KDPW Trade with CCP as a counterparty Source: KDPW KDPW_CCP clears transactions using a range of mechanisms, which reduce the risk of counterparty default. Clearing is performed using novation, which means KDPW_CCP assumes the rights and obligations arising from a trade accepted for clearing. Through this mechanism, KDPW_CCP becomes a counterparty directly and legally responsible to participants who are clearing counterparties. As a result, KDPW_CCP offers a superior level of trading security to participants, in line with international standards. In December 2012, KDPW_CCP launched a new service: the clearing and guarantee of OTC derivatives and repo trades OTC_CLEARING. In August 2014 KDPW_CCP offered a securities netting mechanism, which generates a one settlement instruction sent to KDPW for securities and lower settlement costs. At the end of 2013, the company s share capital was increased with additional funds supporting the multi-tier clearing guarantee system up to a value of PLN 223 million (EUR 53 million). The Polish Financial Supervision Authority (KNF) officially authorised KDPW_CCP on 8 April 2014, confirming that it fulfills all requirements for such institutions under the EU Regulation EMIR. It should be noted that the Polish clearing house is the third clearing house to be authorised in the EU. The decision of the Polish Financial Supervision Authority allows KDPW_CCP to operate as an authorised CCP across the European Union including the addition of the interbank OTC derivatives market to the authorised scope of the clearing house s services. Warsaw Capital Market Summit

11 Polish Investment Programme a catalyst for investments 8. The Investment Programme, founded by the Polish government aims to stimulate investments in Poland s infrastructure by bridging the gap in available long-term financing on the Polish market long-term loans, guarantees and equity. With limited availability of financing for such projects, where the investment term is in excess of ten years, the intention is for this vehicle to attract private capital and for it to be the first or last investor in a given project. The Programme is also aimed at public institutions and local authorities. By 2015, the Investment Programme aims to target co-financing of approximately EUR 10 billion and will provide both debt and equity capital. Investments will be focused mainly on energy infrastructure (generation and distribution), gas transmission and storage, transport infrastructure (motorways, rail), municipal projects (waste management), and industrial and telecommunications infrastructure. The Programme s financial instruments include: Debt financing (loans and guarantees, subscribing to bonds) provided by Bank Gospodarstwa Krajowego (maturity up to 25 years) Equity investments provided by Polskie Inwestycje Rozwojowe (PIR) For Municipalities: debt financing (loans and guarantees provided by BGK) purchase of bonds issued by community partnerships PIR to act as a private co-investor in PPP s PIR was established as the equity arm of the Investment Programme. Currently PIR s investment projects include the development of the B8 crude oil field in the Baltic Sea with LOTOS Petrobaltic S.A. With co-financing by PIR of up to PLN 563 million (EUR 135 million), the launch of commercial production is set for the end of Another project financed by PIR is the 413 MW gas fired Łagisza Power Station in Będzin. This agreement with TAURON Polska Energia allows for an overall investment of PLN 1.5 billion (EUR 350 million), with PLN 750 million (EUR 180 million) investment from PIR. This will be one of the largest projects of its type currently carried out in Poland and will create one of the most modern generation facilities in Europe. Aside from equity financing provided by PIR, debt financing is provided by Bank Gospodarstwa Krajowego (BGK), the second arm of the Investment Programme. BGK has already engaged PLN 15 billion (EUR 3.6 billion) of financing in investment projects. These investments have been made in key projects in the energy sector, such as Enea s project in Kozienice, and Orlen s investments in infrastructure in the chemical sector. Until the end of this year BGK expects its debt agreements to reach a total value of PLN 19 billion (EUR 4.5 billion). Until the end of 2015 PIR expects to be engaged in projects valued at PLN 10 billion (EUR 2.4 billion). 11

12 Warsaw Capital Market Summit 2014 For more information about WCMS 2014 please contact: Find out more: Katarzyna Okrągły Junior Press Officer E: T: Warsaw Stock Exchange Central Securities Depository of Poland (KDPW) Ministry of Treasuryof the Republic of Poland Warsaw, October 2014