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Year-End 2015 Report
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Welcome
Citi Depositary Receipts Year-End 2015 Report
Dear Clients and Friends,
It was another challenging year for global markets in 2015, as pressures from global economic
policies, volatility in the commodities markets and a slowdown in China and emerging markets
overshadowed a record year of M&A activity. In the United States, the Federal Reserve
ended nearly a decade of historically low rates, voting to raise its benchmark interest rate
for the first time since 2006, while the European Central Bank, facing tepid growth and high
unemployment, continued its policy of quantitative easing and a negative deposit interest rate.
As global macroeconomic forces remain a factor for growth in emerging markets and Europe,
a strengthening U.S. economy continues to make U.S. capital markets an attractive place for
global issuers to increase their shareholder base and access capital.
Despite the effect of headwinds and uncertainty in global markets, the DR environment
remained active in 2015. DR capital raising activity remained robust, totaling $11.0 billion,
following a record year in 2014 when Alibaba Group completed its historic $25 billion IPO.
Foreign issuers continued to take advantage of the reduced reporting requirements associated
with going public under the JOBS Act of 2012 to access U.S. capital markets, led by companies
in the pharmaceutical industry. In addition, DR follow-on offerings in 2015 increased 59% from
2014, as companies looked to raise capital to fund operations and acquisition activity.
We expect another active year for DR markets in 2016, as a healthy pipeline of new deals and
corporate actions remain in the headlines. Furthermore, regulatory changes in India, Taiwan
and Romania, which we highlighted in 2014, continue to progress. Local regulators recognize
the economic benefits of DRs, but further development is required if issuers and investors are
to reap the full benefits. As international investors continue to demand access to equities and
debt instruments, evidenced by the success of unsponsored ADR and GDN programs, we see
the DR platform continuing to be an effective tool for future innovation.
On behalf of the Citi Depositary Receipt Services team, we look forward to continuing to
provide global issuers, investors and intermediaries with capital market cross-border solutions.
We hope you gain valuable insights from our 2015 Report.
Sincerely,
Nancy Lissemore
For your convenience, Citi’s Depositary Receipt Services reports are available online.
To download current and previous issues, visit our website (www.citi.com/dr).
Nancy Lissemore
Managing Director
Global Head of Depositary
Receipt Services