Statistics on securities issues of Irish financial and non-financial firms: November 2012

15-1-2013 — /europawire.eu/ — At end-November 2012, the outstanding amount of debt securities issued by Irish financial and non-financial firms, and the Government was €1.01 trillion (or a reduction of approximately 1 per cent since November 2011). This contrasts with a year-on-year increase of more than 2 per cent across the euro area (from €16,440 billion to €16,827 billion).

Market-based debt financing for the banking sector contracted during November with net redemptions of approximately €4.2 billion. The outstanding amount of debt securities for this sector saw a year-on-year fall of 27 per cent to €84.6 billion with 38 per cent (or €32.5 billion) of this amount falling due within the next 12 months.

The outstanding amount of long-term Government debt stood at €88.4 billion; this represents a year-on-year increase of 4 per cent. At end-November 2012, Irish resident investors accounted for 28 per cent of long-term Irish Government bonds compared with 21 per cent in November 2011.

Equity shares had an outstanding value of €197.2 billion at end-November. This includes quoted shares issued by Irish residents (€196.7 billion) which saw a year-on-year net increase of 21 per cent (driven primarily by increases in the non-financial corporate sector). The value of the stock of quoted shares in the euro area recorded an annual increase of approximately 14 per cent in the year to November (from €3,875 billion to €4,407 billion).

Government Debt Issuance:

Long-term Government debt remained broadly unchanged in November 2012[1] at €88.4 billion. This represented a year-on-year increase of approximately 4 per cent when compared with November 2011 (€85.4 billion). Almost €16.9 billion (or 19 per cent) of the euro-denominated long-term debt will fall due over the next 3 years (see Table 1). More than €10 billion (or 60 per cent) of this latter figure is payable to non-resident investors.

The NTMA auctioned €500 million of Treasury Bills during November 2012[2] at an annualised yield of 0.55 per cent (or slightly lower than the rate pertaining in October 2012). The NTMA received auction bids totalling more than €2 billion (or more than four-times over-subscribed).

Holdings of Government Bonds:

At end-November 2012, Irish resident investors accounted for 28 per cent of long-term Irish Government bonds compared with 21 per cent in November 2011. The Irish banking sector accounted for a significant portion of this increase due to banks’ demand for Government bonds to use as collateral for monetary policy operations. This sector accounted for 25 per cent of all holdings at end- November 2012 (or €21.7 billion), compared with 17 per cent at end- November 2011.

Approximately 51 per cent of all resident holdings will mature within the next 5 years (compared with 44 per cent in October 2012). This change reflects the maturity profile[3] of the Treasury Bond 2017. Furthermore, some 41 per cent (or €26.2 billion) of those long-term bonds held by non-resident investors will mature between 2020 and 2025 (see Figure 2).

Approximately €5.6 billion in long-term Government bonds will fall due in 2013 with almost 70 per cent of this amount repayable to non-resident investors.

Detailed historical information from 1969 on the Securities Holdings Statistics are published here.

Banking Sector:

Market-based debt financing for the banking sector contracted during November with net redemptions of approximately €4.2 billion. Over the same period, Bank of Ireland continued its preparations in advance of the expiry of the ELG as it became the first of the Irish-owned banks to re-enter the international bond market. The bank raised €1 billion with a three-year covered bond offering at an interest rate of 3.2 per cent.

The outstanding amount of debt securities for this sector saw a year-on-year fall of 27 per cent to €84.6 billion with short-term debt contracting by 36 per cent. Approximately €32.5 billion (or 38 per cent) of the total debt securities issued by the banking sector will fall due within the next 12 months. Over the past 12 months, the total outstanding amount of debt securities for the euro area increased by just over 1 per cent.

The outstanding amount of the banking sector’s equity securities increased by approximately €600 million (or 4 per cent) in November 2012. This represents a year-on-year increase of just over 4 per cent.

Non-Financial Corporates:

The outstanding amount of debt securities issued by non-financial corporates (NFC) increased by almost €400 million (or 20 per cent) to approximately €2.4 billion at end-November 2012; this represents a 20 per cent decrease from November 2011. More than €100 million (or 5 per cent) of the total debt securities issued by the NFC sector will fall due within the next 12 months. The year-on-year increase in the outstanding debt securities for NFCs resident in the euro area was approximately 13 per cent.

In recent months, there have been a number of de-listings from exchanges in Ireland and other peripheral euro area member-states with companies such as CRH and United Drug having moved their primary listing out of Dublin. However, these de-listings do not serve to reduce the cumulative market capitalisation figures reported here as these firms are still resident in Ireland.

The equity securities outstanding for the NFC sector increased by €2.7 billion (to €168.2 billion) in November 2012. This represents an increase of 24 per cent when compared to November 2011. The annual percentage change in market capitalisation for NFCs in the euro area was approximately 12 per cent.

Detailed tables can be found on the Central Bank of Ireland’s website here. The data are largely compiled from an ESCB securities reference database, the Centralised Securities Database.

View information release with charts and related data tables.

Notes:

• The statistics are based on Irish resident sectors issuances of securities where an ISIN[4] code is assigned, irrespective of the market of issue or listing. Non-ISIN information is also provided for monetary financial institutions.
• Debt securities are broken down according to their original maturity and coupon type. Equity securities are classified into quoted and unquoted securities excluding investment fund shares/units.
• The difference between month-on-month equity stocks reflects valuations changes transactions in addition to transactions and other adjustments, for example, reclassifications and corrections.
• The data reflect revisions arising from data quality management activities performed by the Bank, which contribute to improvements in the data.
• Euro area figures are sourced from the ECB’s Euro Area Securities Issues Statistics monthly publication.
• The methodological notes guiding the compilation of these statistics can be found on the ECB’s website.