GCMA Completes Survey on Bond and Sukuk Investor Relations
Results Underline Need for Issuers to Communicate with Bond and Sukuk Investors
For Immediate Release
DUBAI, October 25, 2010 – The Gulf Capital Market Association (GCMA) announced today that it has concluded a survey of Gulf-based issuers and investors on bond and sukuk investor relations (IR).
The quality of the responses indicates growing recognition regular communication between issuers of bond and sukuk and their stakeholders is essential. stated GCMA President Grifferty. GCMA IR Subcommittee member Jan-Willem Plantagie added, IR has often been equated with shareholder relations, but debt IR should be considered a discipline in its own right.
Among the key findings:
A majority of investors have become more demanding over the past two years and an overwhelming majority feel that good IR can lead to more aggressive pricing of new issues. Fewer indicated that they had had contact with IR staff and most consider the information provided by issuers to be insufficient. Most had met issuers on roadshows, but a number were not satisfied with the quality and quantity of information provided.
Among issuers, the vast majority believe that equity and bond investors have different information needs and that fixed income investors require more information in times of stress. Most issuers indicated that their IR staff deal with fixed income, but a majority have not dedicated staff to it. GCC issuers were split over whether the knowledge base of Gulf investors is at par with or below that of non-GCC investors. Most issuers do not benchmark their IR activity to guidelines or comparable companies.
GCMA IR Subcommittee member Giambattista Atzeni stated, the survey revealed that progress has been made as well as a keen awareness that the bar needs to be raised.
Detailed results will be shared with survey participants and GCMA members. The survey is the first step in a process leading to publication of debt investor relations best practices that will set the standard for regional companies. GCMA, along with the Middle East Investor Relations Society, will gather leaders in debt investor relations along with regulators and corporate governance experts to analyze the survey results in detail and author the best practices.
NOTE TO EDITORS:
The Gulf Capital Market Association
The Gulf Capital Market Association (GBSA) is the regional trade association representing the Arabian Gulf bond and sukuk market. Andrew Dell, HSBC’s Managing Director and head of CEEMEA Debt Capital Markets, Global Capital Financing, is Chairman of its Steering Committee. GCMA harnesses the commitment of its stakeholders to promote a wide and deep market on the basis of international best practices.
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