22 October 2010
City of London predicts a strong future for international
capital-raising in emerging markets
The future prospects for capital-raising from emerging market
companies seeking equity finance for sustainable long-term growth
are strong, according to a new paper published by the City of
London Corporation today (22 October 2010).
Emerging markets - International capital raising trends
highlights how a combination of infrastructure development,
increasing domestic consumption, privatisation and robust
post-crisis economic growth will fuel demand for investment capital
among these countries in the short to medium term.
The report, produced by Trusted Sources, which focuses
specifically on Russia, Brazil, Mexico, South Africa and India,
acknowledges the increasing sophistication of domestic capital
markets but also cites the established advantages of international
equity markets in London, New York and Hong Kong. This includes:
access to a wider pool of investors, inclusion in major indices,
strong sectoral expertise, prestige and the provision of foreign
capital for overseas acquisitions.
Lord Mayor of the City of London, Nick Anstee, who recently
returned from a business visit to Latin America (9 – 20 October)
said:
"Having led senior City business delegations to four of the five
emerging markets to feature in this report, and scheduled to visit
the final one in India next week [28 October – 2 November], I have
witnessed first hand the remarkable growth that companies in these
countries are experiencing.
"Interlocutors in these countries recognise the City's long
established strengths when it comes to international capital
raising, even as their domestic markets develop the tools needed to
accommodate listings from an increasing number of local firms.
"London remains a leading global financial centre – home to over
250 foreign banks and three quarters of Fortune 500 companies. This
is equally true when it comes to international capital raising with
326 firms incorporated abroad (and many more with foreign
operations) listed on the London Stock Exchange. We recently
welcomed India's Essar Energy onto the FTSE 100 and look forward to
helping more emerging markets companies benefit from the London
market."
Stuart Fraser, Policy Chairman at the City of London
Corporation, added:
“Emerging markets are playing an increasingly important role on
the global financial stage but in order to sustain their impressive
growth it is vital that local businesses have strategic access to
international capital when looking to expand their operations.
"London is a world leader in this field – whether it be via the
FTSE 100, AIM or other platforms. As these emerging markets
overcome challenges and expand their capacity for local listings UK
policymakers should ensure London's position is supported with a
clear, consistent and competitive approach to regulation and
taxation."
Ends
Notes for editors
About the City of London Corporation:
The City of London Corporation is a uniquely diverse organisation.
It supports and promotes the City as the world leader in
international finance and business services and provides local
services and policing for those working in, living in and visiting
the Square Mile. It also provides valued services to London and the
nation. These include the Barbican Centre and the Guildhall School
of Music & Drama; the Guildhall Library and Art Gallery and
London Metropolitan Archive; a range of education provision
(including three City Academies); five Thames bridges (including
Tower Bridge and the Millennium Bridge); the Central Criminal Court
at Old Bailey; over 10,000 acres of open spaces (including
Hampstead Heath and Epping Forest), and three wholesale food
markets. It is also London’s Port Health Authority and runs the
Animal Reception Centre at Heathrow. It works in partnership with
neighbouring boroughs on the regeneration of surrounding areas and
the City Bridge Trust, which it oversees, donates more than £15m to
charity annually.
About Trusted Sources:
Trusted Sources is an independent research firm that specialises in
the analysis of the political economies of Brazil, Russia, India
and China, as well as other frontier markets. The ultimate goal of
our analysis is to provide sound and timely expert judgement on
developments and issues that are impacting not only emerging
markets but also the global economy. Tapped into an extensive
network of experts with first-hand experience in areas such as
business, finance, industry and government, we spot evolving trends
early and pinpoint themes and topics somewhat removed from the
mainstream, providing clients with a unique understanding of the
opportunities and risks in emerging markets.
www.trustedsources.co.uk
Press contact
Sanjay Odedra, Press Officer, City of London Corporation
Tel: 020 7332 1835 / Mobile: 07831 542856
Email:
sanjay.odedra@cityoflondon.gov.uk