Accessing Global Capital Markets Through London - LSEG

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Accessing Global Capital Markets

Through London

LSEG & Israel

April 2018

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London Stock Exchange Group Building stable, trusted markets since 1801

Selected LSEG business lines and areas of focus

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London Stock Exchange Group A global leader

$873 trillion Derivatives cleared by SwapClear

in 2017 to support G20 and global

financial stability

$15 trillion Assets under management using

our benchmarks

$10 trillion Total money raised on London

Stock Exchange in the last

decade

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Private Equity

Venture Capital

Seed Capital

Business

Angels

Friends

Family

Start - Up Early Stage Expansion Consolidation & further

capital raising

Diversification of investors, M&A and

International Expansion

Concept &

seed stage

Fu

nd

ing

re

qu

ire

me

nt

£500k

£1m

£100k

£50k

£150m

£1bn

Strategic consideration

Markets that Support Growth Our Choice of Equity Markets

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London Stock Exchange welcomes

world’s first Komodo (Indonesian rupiah)

corporate bond by Indonesian authorities.

107 IPOs on London

Stock Exchange in 2017

raised a combined £15

billion, nearly 4 times

higher than the next

European competitor.

More Further Offer

(FO) transactions on

LSEG markets than

any other exchange

globally in 2017

£41bn A total £41bn equity capital was raised in

London in 2017 through IPOs and follow on

issuance, 36% higher than in 2016.

London’s IPOs became even more

international in 2017, with 9 of the 10

largest IPOs considered to be

international companies.

107 IPOs

AIB Group First Komodo Bond

9 of top 10 IPOs were international

Recent Highlights & Key Transactions

More closed end

funds, SPACs and

REITs have listed

in London than

anywhere else in

the world in 2017.

37 Fund IPOs

Europe’s largest IPO of the year chose to dual list

in London. Allied Irish Banks raised £3bn at IPO.

Source: Dealogic, London Stock Exchange data, January 2018

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Israeli PM Benjamin Netanyahu

visited London Stock Exchange to

emphasise the strong links between

Israel and LSEG.

Both Israel and LSEG expressed their

commitment to innovation, technology

and continuing business growth.

LSEG is supporting the thriving Israeli

business community by contributing to

financing its growth.

28 Israeli companies are already

listed in London ($14.7 billion) and 9

Israeli SMEs are part of our ELITE

programme.

LSEG and Israel A partnership to support future growth

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Source: Dealogic & LSE calculation, April 2018

We are proud to have 28 Israeli companies on our markets with listings of almost $17.5 billion. It underlines the exceptional

investor interest in building exposure to Israel’s dynamic economy.

Main Market AIM Total

No. of Companies 9 1 18 28

Total Market

Capitalization $12.4bn $0.1bn $5.0bn $17.5bn

Total money raised by Israeli companies since 2007 $6.2bn

The Israeli Listed Peer Group in London

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Transaction Details

Issue Date 18 Jan 2017

Issue Size €1.5 billion / €750 million

Coupon 1.5% / 2.375%

Maturity 10 years / 20 years

Country Profile

It is the first non-European sovereign to issue

a euro-denominated bond of 20 year tenor.

“Israel has limited funding needs and 20 years

is a tenor they don’t necessarily need, but it

allowed them to broaden and diversify into a

different and distinct pool of investors, such

as German insurers, pension funds and high

quality accounts from Europe.” Vi Davda,

Fixed Income Syndicate, Barclays.

“Investors love Israel. It is very stable and has

a good relationship with the rest of the world.

It is OECD, so gets the French bid and US

investors love them” Market appraisal.

Debt issuance story

This is the largest ever euro-denominated

bond issued by the country as well as being

its first euro deal in 3 years.

The issue was over 4.3 times

oversubscribed with the combined book for

the two tranches closing at €9.8 billion.

The 2027 notes were priced at 87bp over

mid-swaps, the cheapest financing the

country received since 2005, while the 2037

notes were priced at 125bp over mid-swaps.

Joint leads: Bank of America Merrill Lynch,

Barclays, and Citigroup.

Country Details

Company State of Israel

Rating A+/A+/A1

GDP USD 297 billion

Market Main Market

Geographical Distribution

10Y 20Y

UK 29% 28%

France 20% -

Germany 19% 48%

Rest of Europe 17% 9%

Switzerland 7% 4%

Israel 6% 6%

Asia - 4%

Other 2% 1%

Distribution by Investor Type

10Y 20Y

Fund Managers 51% 32%

Insurance / Pension funds 24% 53%

Banks / Private banks 17% 9%

Governments / Central Banks 7% 3%

Hedge Funds - 2%

Other 1% 1%

Israel opens 2017 international sovereign bond market with

oversubscribed deal

Israeli Sovereign Bond

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ELITE – 9 Israeli Companies

eToro Equity Investment Instruments, Financials eToro is a the world’s leading social trading network. A global market place for people to trade currencies, commodities, indices and CFD stocks online in a simple, transparent in a more enjoyable way.

Software & Computer Services, Technology Deskforce is a cloud communications company, marketing Omni Channel Communication API empowering businesses to add voice, messaging and social network to any App or CRM.

Leisure Goods, Consumer Goods Player Maker has developed proven pioneer technology that gives players real time biomechanical analysis and technique corrective feedback.

iCapital Financial Services, Financials iCapital develops process automation solutions and decision-making algorithms for the financial industry.

Showbox Media, Consumer Services Showbox is the world’s first cloud-based intuitive video creation and production platform, that guides creators, businesses, brands and publishers from idea to high quality video in a matter of minutes.

Tevva Mot Industrial Transportation, Industrials Established in London in 2012, Tevva Motors develops and produces electric range extended drivetrains for 7.5 tonne trucks, primarily for the back-to-base urban delivery market.

Financial Services, Financials BLender provides multi-continental, and cross-border, marketplace lending service in developing and emerging countries. Founded by a group of physicists and IT professionals with varying backgrounds.

Software & Computer Services, Technology geekApps is a company that has developed an interactive platform allowing companies to create and manage their own native apps without prior knowledge of computer programming, at an affordable price.

Massivit 3 Software & Computer Services, Technology Massivit 3D is a leading provider of large format 3D printing solutions. Their patented technology enables objects to be 3D printed at remarkable size, speed, versatility and ease.

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Amount raised: $100m Closing Date: 21st March 2018

Series E

FOLLOW ON INVESTORS

CORNERSTONE INVESTOR

140 Countries

$161m Total Capital

Raised

9m Users

2015 Joined ELITE

Company

ELITE Partner

Use of Proceeds: Company expansion – global offices; marketing budget; M&A in selected geographies; and R&D (including development in Blockchain) Valuation: $700 pre-money (2.7x 2017 revenues)

2x Large Family Offices

Etoro Case Study $100m equity raising through ELITE Club Deal

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© April 2018

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