The annual general meeting of the Luxembourg Stock Exchange (LuxSE) took place on Wednesday, May 11. On this occasion, Alain Kinsch was nominated and elected chairman of the board, replacing Frank Wagener. The latter mentions that he spent “16 years at LuxSE, including 11 years as chairman.” In this observation, he explains that during this period he contributed to the “modernization of structures”, observed the “rejuvenation of teams” and “internationalization of marketing”. Another point, he emphasizes: “LuxSE score has quadrupled.”
His successor, Alain Kinsch, has experience as an independent director in several national and international companies. He is also the Vice President of the State Council. From 2009 to 2020, he held the position of Head of Partner Country EY Luxembourg. “It is a great honor for me to become the Chairman of the Board of Directors of the Luxembourg Stock Exchange. Thanks to its central position in the center of Luxembourg’s financial ecosystem, its international influence and its ability to stay at the forefront, the Luxembourg Stock Exchange has made a significant contribution to the development of our financial center, ”said the new President of the Administration. board. “A goal that I have personally been committed to for the past 25 years, and I look forward to achieving my new position.”
At the same time, LuxSE published its consolidated financial results for the year ended 31 December 2021. It will be recalled that the group consists of LuxSE and its subsidiary Fundsquare; a data center for funds located in Luxembourg, 100% of which he owns.
60% of issuers in Europe
At the end of 2021, the group’s consolidated revenue amounted to 55.4 million euros, an increase of 8.1% over the same period last year. The figure is broken down by 34.3 million euros for LuxSE and 21.1 million euros for Fundsquare. Consolidated net profit amounted to 13.4 million euros. This is 20.5% more than last year. € 9.3 million comes from LuxSE and € 4.2 million from Fundsquare. However, dividends remain unchanged at 60 euros (net worth 51 euros).
The growth of the group’s financial performance in 2021 is due to an increase in the number of new listings, says LuxSE. During the year, LuxSE welcomed 12,687 new shares in its markets, an increase of 17% compared to 2020. LuxSE would also like to point out that this is the strongest year in terms of new listings since 2008. “After a difficult 2020 due to the pandemic, economic activity around the world rose in 2021, and this was reflected in the Luxembourg Stock Exchange. We have seen a significant increase in listing activity on our stock exchange over the last year, which has contributed to high financial performance, “said Julie Becker, CEO of LuxSE.
In terms of geographical coverage of capital markets, LuxSE has 11 supranational issuers and 115 sovereign issuers. Thus, the stock exchange has more than 2,000 issuers with more than 37,000 ratings denominated in 72 currencies. Thus, 60% of issuers passing through LuxSE are in Europe, 12% in Latin America, 10% in North America and 7% in Asia.
“2021 was also a significant year for sustainable financing, both worldwide and at LGX (Note: Luxembourg Green Exchange, a platform dedicated exclusively to sustainable securities), and we continued to contribute to the transformation of finance through new products and services. “Says Julie Becker. Thus, in 2021, LGX issued 569 new bonds, accounting for 47% per year, worth 246 billion euros.
As of December 31, LGX had registered 222 issuers in 47 countries for a total of 2,613 securities worth about 640 billion euros. Last September, LGX celebrated its fifth anniversary. The platform continues its development by adding a section for climate-oriented issuers, in this case companies that receive at least 75% of their revenue from clean activities.
“2022 is likely to be marked by a complex geopolitical and economic context and the war in Ukraine, which draws our attention to the increasingly important green and digital transition,” explains Julie Becker. It goes on to say that LuxSE has taken action following a series of international sanctions imposed by the European Union against Russian individuals and legal entities.
Thus, LuxSE suspended 6 securities issued by Russian issuers. Initially, 648 ruble-denominated securities issued by 20 entities were suspended. The suspension of 128 of these securities, all issued by supranational issuers and international banking groups, was finally lifted.