APPENDIX 16
Memorandum submitted by London Stock Exchange
We believe that there are increasing opportunities
opening up in Latin America, particularly in Brazil and Chile,
but also in Peru, Colombia, Argentina and Uruguay.
Historically there have been strong cultural
and time zone links between the US and Latin America, with the
majority of overseas issuers from the region listing and trading
in New York. However, growing demand for international capital
and a desire to access the European market place, as well as increasing
dissatisfaction with US regulation, has led to an increasing number
of enquiries from companies and advisers in the region regarding
the benefits of listing and trading in London.
The Exchange's international team have recently
visited the region and begun to actively market to attract issuers.
They experienced a very positive reception for the message that
London's depth of institutional capital, its leading regulatory
and governance regime and the skills of its advisory community
can help companies from Latin America access funds to support
their growth. Already these early efforts are paying off. In October,
we were delighted to welcome Hochschild Mining Plc, the first
Main market primary listing from Peru, which raised £270
million.
However, we recognise that one of the limitations
for attracting more companies from Latin America is a general
lack of awareness regarding the London offering. We are seeming
to address this through our direct activities, as well as working
closely with the corporate advisory community, the Corporation
of London, UK Trade and Investment and the British Embassies in
the countries concerned. As enthusiastic supporters of the Chancellor's
initiative to promote the City and UK financial services abroad,
we also look forward to political support for raising awareness
in Latin America as appropriate.
We are currently in the process of finalising
our specific marketing plans, trips and resourcing for the region
in 2007-08. When complete I would be happy to provide you with
additional relevant information.
7 December 2006
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