In the year to date, USD31.2bn has been issued through 89 convertible bonds. Of the total, Asia accounted for 32%, Europe 13.5%, and the US 49%. The largest five deals represent almost 33% of the total issue volume, but the market has proven to be very supportive to smaller transactions as well, enabling new entrants to raise funding at attractive levels.*
"We have made significant progress this year in the equity-linked market," said Matthew Kirkby, Global Head of Banking, Asia Pacific. "RBS has been involved in one third of the international convertible bond issuance by Asia ex-Japan-listed companies in the year-to-date".
Mr Kirkby added that this included a synthetic Renminbi convertible bond transaction that RBS priced this week. "This reinforces our leading position in the offshore Renminbi financing market for financial institutes and corporates in Asia and across the globe," he said.
RBS raised a combined USD1.2bn new money for five clients in Asia and Europe this month, representing approximately 34% of global equity-linked issue volume in April 2011*, while also acting as joint-lead dealer manager on a convertible tender in the US.
"These successes further illustrate the competitive edge of our global debt and equity-linked franchises," said RBS's Global Head of Equities Origination, Patrick Broughton.
Chris Lee, Managing Director, Convertible Bond Sales said: "In a world where investors are increasingly concerned about inflation and rising interest rates, there is an obvious shift towards equities. Convertible bonds are a stepping stone on that route."