LONDON, Oct 1 (Reuters) - German stock market group Deutsche Boerse expects up to 10 more corporate bond issues before the end of the year as clients seek alternatives to raising capital via a listing.
The Boerse said on Monday it has helped firms raise 300 million euros through 11 corporate bonds so far this year, compared with six issues totalling 349 million euros for the whole of 2011.
“I expect another five to 10 bond placements this year and we are confident of ending the year up on last year by the number and value of bonds issued,” said Alexander Hoptner, executive vice president at Deutsche Boerse.
Klaus Hessberger, managing director and co-head of Equity Capital Markets EMEA at JP Morgan, said corporate bonds are proving an attractive alternative to a full listing.
“IPO activity has fallen to the levels we saw in 2008/2009 but there are some signs of recovery. Volatility is at a low level and the major stock indices have recovered,” he said.
German insurer Talanx is scheduled to float its shares on Deutsche Boerse on Tuesday, having covered its books last month.
The flotation of up to 29 million new shares in a price range of between 17.30 and 20.30 euros will value Germany’s third-biggest insurer at between 4.4 billion euros ($5.8 billion) and 5 billion euros, Talanx said in September.