As the coronavirus pandemic continues to impact corporate issuers, how can they minimise the impact on their depositary receipt programmes? flow illustrates how partnering with an experienced depositary bank, with a global footprint and strong track record, instils confidence and stability in a time of volatility
Ongoing volatility in the wake the Covid-19 pandemic continues to take its toll in the capital markets. In April alone, Bloomberg showed 23.38 billion of depositary receipts traded, up 63% on the previous month, and US$531.45bn of DRs traded, 38% more than March 2020.1
These volumes present a very persuasive case for even closer interaction between issuers and investors because with 1,474 sponsored programmes2, DRs provide a simplified and well-established way for international companies to access global markets. Hundreds of companies globally have issued American depositary receipts (ADRs) and global depositary receipts (GDRs) to carry out IPOs, to raise additional capital or simply broaden their investor base free from the requirements of a direct listing. ADRs are US dollar denominated negotiable instruments issued by a depositary bank such as Deutsche Bank3, while global depositary receipts will access two or more markets, usually the Europe and the US (similar to an ADR).
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