Global FactorsWhile 2012 was characterized by a mixture of volatility, depressed equity prices and low interest rates, China's GDP rebounded in the fourth quarter and BNY Mellon's forecast is for a slightly faster growth rate globally in 2013, said Kearns. (2)
"In this environment companies increasingly look beyond domestic markets and traditional financing centers for funding, and they have continued to tap international capital markets in a considerable way," Kearns added.
There were 31 capital-raising programs in 2012, including Russia's Sberbank, one of the largest DR offerings ever, as well as sizable and innovative programs for Russia's MegaFon and Brazil's BTG Pactual.
"Our recent investor relations survey shows that half of large cap companies from developed markets that are considering additional listings are interested in doing so in emerging markets," he said.2012 Highlights include:
- The BNY Mellon Classic ADR Index(SM) was up 18% for the year ending Dec. 31, 2012. The top performing DR country indices were Germany with 33%, Australia with more than 25%, followed by China (+25%), France (+24%), and Switzerland (+22%)
- The most actively traded U.S.-listed DRs by value included China's Baidu, Brazil's Vale and Petrobras, and the U.K.'s BP and Vodafone
- Russian issuers continued to dominate the most actively traded DRs on the International Order Book (IOB), with Gazprom, Lukoil, Sberbank, Rosneft and Norilsk Nickel, the top five
- The most active OTC-traded DR issues included Switzerland's Nestle and Roche, Russia's Gazprom, and BASF
- 157 billion DRs worth $2.79 trillion traded, representing declines of 10% and 26%, respectively compared with 2011
- 84 new sponsored DR programs were created
- Almost $13 billion in capital was raised through 31 DR transactions, declines of 15% and 39%, respectively, over 2011