Investment & Growth: Building a National Plan Financial Instruments Liquidity

Transcription

1 Investment & Growth: Building a National Plan Financial Instruments Liquidity Socrates Lazaridis CEO, ATHENS EXCHANGE December 1 st 2015

2 EU and G20 Initiatives Compared to other parts of the world, European businesses remain heavily reliant on banks for funding and relatively less on capital markets. Strong capital markets would complement banks as a source of financing and would: The Green Bible for the union of the European Capital Markets unlock more investment for all companies, especially SMEs, and for infrastructure projects attract more investment into EU from the rest of the world Make the financial system more stable by opening up a wide range of funding sources Source: European Commission, February 2015 This IOSCO Research Note(*) has been prepared for the G20 Finance Ministers and Central Bank Governors to examine recent examples of capital market solutions in developed and emerging markets that have contributed to the financing of small and medium enterprises (SME) and infrastructure projects, and informs IOSCO s regulatory community about the role that market-based financing can play. (*) Market-Based Long Term Financing Solutions for SMEs and Infrastructure, IOSCO (International Organization of Securities Commissions), 9/2014. Coverage: Australia, Brazil, China, France, Germany, India, Italy, Japan, Malaysia, Netherlands, Nigeria, Ontario, Singapore, South Africa, Spain, Turkey, UK & United States. Page 2

3 The needs of Greek SMEs According to study of Oliver Wyman (3/2014) the financing gap for Greek SMEs is estimated at billion Euros. o o o Mature companies: 10 B euros in fresh equity or debt conversion (or a combination of the two) to return companies to affordable debt levels. Even if banks agree to convert 30% of their NPLs into equity, fresh equity of Euro 3 4 billions euro is needed 1 billion euro of growth capital is needed to support the expansion of financially sound and early stage companies. Greek SMEs: o Accounting for 85.8% of employment (EE-28: 66.9%) o Contributing for 72.1% of added value (EE-28: 58.1%) Micro SMEs: o Accounting for 55.2% of employment (ΕΕ-28: 29.1% o Contributing for 33.1% of added value (ΕΕ-28: 21.6%) The success of SMEs will improve the employment and the development in general through its multiplicative effect in the economy. SMEs constitute a significant proportion of ATHEX companies. Regulated Market: 43% and Alternative Market: 92%. Page 3

4 Global Coverage Page 4

5 Markets & Tools by ATHEX Company Business life cycle Which ATHEX Markets can be used Financing tools R&D / Prototype Early stage / Commercial Growth / Expansion Establishment / Maturity Further development or Decline ENA STEP ENA STEP ENA PLUS ENA PLUS ENA PLUS ENA FIXED INCOME ENA FIXED INCOME ENA FIXED INCOME ENA FIXED INCOME MAIN MARKET MAIN MARKET MAIN MARKET MAIN FIXED INCOME MAIN FIXED INCOME MAIN FIXED INCOME Equity Equity Equity Equity Corporate bonds Corporate bonds Corporate bonds Corporate bonds Additional tools provided by ATHEX Can Listed Investment Funds participate? Centralised Electronic Bookbuilding (CEBB) C CIC (EΚΕΣ) PIC ( ΑΕΕΧ) Centralised Electronic Bookbuilding (CEBB) C CIC (EΚΕΣ) PIC (ΑΕΕΧ) REIC (ΑΕΑΑΠ) C CIC (EΚΕΣ) PIC (ΑΕΕΧ) REIC (ΑΕΑΑΠ) C CIC (EΚΕΣ) PIC (ΑΕΕΧ) REIC (ΑΕΑΑΠ) r e v e n Friends & Family Business Angels Venture Capitals Private equity funds, institutional funds CIC Closed Investment Companies PIC Portfolio Investment Companies REIC Real Estate Investment Companies time Page 5

6 Greek Market Constantly in the View of Foreign Investors Participation of Foreign Investors on Market Capitalization (%) 2015 Source: FESE October 2015 Page 6

7 Strong Capital Raising Ability Greek listed companies have raised 43bil from 2012 until October % of total funds raised at European level in the period 2012 October 2015 have been raised from ATHEX In 2013 ATHEX was in the 3 rd place of the rank according to capital raised among FESE members ( 30.3bil) 7.6bil the new capital from foreign investors during the 2014 Greek Bank share capital increases 9.3bil the capital flows from the foreign investor during recent Bank recapitalization Source: FESE, October 2015 Page 7

8 Extroversion & Mid Caps the Stars of the Market Returns on 2015 % of Market Capitalization Source: ATHEX November 2015 Page 8

9 Financial Instruments Liquidity