The Stock Exchange as a source of finance
The difficulties in securing funding and the recapitalisa-
tion requirements and restructuring of the Spanish finan-
cial systemmade a significant contribution to companies
looking to the Stock Exchange as a source of funds.
Capital increases of €32.1 billion in 2013
Investment flows channelled through the stock market
-including rights issues, scrips and new issues- amounted
to €32.1 billion, up 11.9% on the €28.68 billion total for
2012. These figures show the importance of the market
for financing issuers as they strengthen their balance
sheets, making the Spanish market one of the world
leaders in channelling funding to companies in 2013.
Funds raised for a variety of reasons
Companies have had to turn to themarket to bolster their
capital for a number of reasons, including conversion of
bonds and preference shares, as a way of reducing their
debt, enhancing their capital and increasing the liquidity
of certain instruments that were restricted in this regar
Transactions for such purposes in the year amounted to
€8.0 billion, with banks once again playing the leading
role, accounting for 91.4% of such issues.
Another highlight in this area in 2013 was the large
volume of capital increases for which pre-emptive
subscription rights were traded in the market, topping
€21.60 billion. One of the major contributor to this was
the use of new shares as an instrument for shareholder
remuneration through scrip dividends or optional scrip
dividends: 9 companies chose this option, with a market
value of €10.18 billion. The other major contribution
came from capital increases by nationalised banking
entities, which exceeded €10.60 billion.
Companies started looking to the stock markets as a
source of funding in 2012, and this trend continued in
2013. The special circumstances resulting from the crisis
and, in particular, bank recapitalisation and non-finan-
cial sector deleveraging, with simultaneous endeavours
to bolster capital, have resulted in many issuers seeking
finance through corporate transactions in the markets.
Large companies have resorted to new remuneration
formulas and rights issues to beef up their balance sheets.
Spain’s stock market ranked fifth in the World Federation
of Exchanges global ranking of investment flows, at €32.1
billion, 11.94% up on the previous year. Spain’s stock
market confirmed its position as one of the world leaders
with capital flows of €32.1 billion in 2013. This position
is largely the result of intense activity in terms of capital
increases, which was at an all time high. These figures
include new flotations, IPOs, the market value of shares
from rights issues and new listings.
40,000
35,000
30,000
25,000
20,000
15,000
10,000
5,000
0
Capital increases on Spanish stock markets not linked to exchange of assets
(2001-2013).
Millions euros
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
Source: BME
41
Business Areas
Annual
Report 2013
BME
1...,31,32,33,34,35,36,37,38,39,40 42,43,44,45,46,47,48,49,50,51,...236