Information Release 11 November 2011
The Central Bank of Ireland today published updated statistics on market-based financing activities of financial and non-financial firms incorporated in Ireland at end-November 2011. Issuances of debt and equity securities provide an alternative source of financing to bank-based funding. The dataset contains information on the volume of bonds and notes issued during November, as well as the market valuation of outstanding equity shares by sector of issuer at end-November. The sectors of the issuers are: monetary financial institutions; other financial intermediaries; Government; non-financial corporates; and insurance companies and pension funds.
- At end-November 2011, the outstanding amount of debt securities issued by Irish financial and non-financial firms, and the Government remained at close to €1.02 trillion; this represented a reduction of five per cent compared to the same period in 2010. This comprised €745 billion in Euro denominated securities and €272 billion in non-Euro denominated securities. There were ongoing redemptions of short-term debt securities by the banking sector in November with the pace of redemptions decreasing slightly compared with October.
- The outstanding value of long-term Government bonds was €85.4 billion at end-November. This was down from €89.8 billion in October following the redemption of a government bond in November.
- Developments for market-based debt financing for the banking sector comprised net redemptions of €180 million during November; this included the issuance of €526 million in long-term debt securities which was offset by the redemption of €706 million of short-term debt securities. Net redemptions in November represent a substantial decrease on the equivalent figure for the banking sector in October 2011 when net redemptions of €1.7 billion across short and long-term debt securities were recorded. Moreover, the pace of these redemptions has fallen substantially when compared with November 2010 (€5.3 billion).
- Following net redemptions of long-term debt securities of €5.6 billion during October, the other financial intermediary sector recorded net issuance of long-term debt securities of approximately €7.7 billion in November. The outstanding amount of long-term debt securities rose to more than €761 billion at end-November for this sector. This sector includes entities involved in securitisation, asset finance companies, and treasuries etc., predominantly involved in international financial service activities - for example IFSC type entities. The National Asset Management Agency is also included in this sector.
- The outstanding debt securities issued by non-financial corporates, and insurance companies and pension funds were €3 billion and €2.3 billion, respectively, at end-November 2011.
- Equity securities, excluding investment fund shares/units, had an outstanding value of just over €181 billion at end-November, mainly comprising equities quoted on stock exchanges; this represented a month-on-month net increase of approximately €1 billion (or almost one per cent). This rise was primarily attributable to a €1.5 billion increase in the outstanding amount of equity securities of non-financial corporates which was partially offset by a decrease of approximately €0.5 billion in the outstanding amount of equity securities of the banking sector. The increase in the non-financial corporates sector was as a result of increases in market valuation.
- The total outstanding amount of equity securities at end-November represents an increase of 10 per cent compared to the same period in 2010. This increase was principally driven by the rise in the outstanding amount of equity securities of the MFI sector (71 per cent), the other financial intermediary sector (15 per cent) and non-financial corporates (six per cent) since November 2010.
Detailed tables can be found on the Central Bank of Ireland’s website. The data are largely compiled from an ESCB securities reference database, the Centralised Securities Database.