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DEPOSITARY RECEIPT GROWTH EXCEEDS EXPECTATIONS; OVER 124 NEW PROGRAMS ESTABLISHED, $10 BILLION RAISED, AND $200 BILLION TRADED IN RECORD YEAR

 NEW YORK, N.Y., Jan. 4 /PRNewswire/ -- Record levels in the Depositary Receipt market were achieved in 1993 for trading volume, capital raised and number of new programs established, according to The Bank of New York.
 One hundred twenty-four new publicly traded, sponsored programs were established from 28 countries, up 32 percent from last year's 85 new programs. Trading volume on the U.S. exchanges totalled 6.3 billion Depositary Receipts, valued at $200 billion. This represents a 46.5 percent increase in Depositary Receipt share trading volume and a 60 percent increase in dollar volume compared to 1992. These figures represent only Depositary Receipts traded on the U.S. exchanges (NYSE, NASDAQ, AMEX) and do not include those traded in the over-the-counter market where the majority of programs trade.
 Depositary Receipt capital raisings were completed for the first time by companies from Turkey, Thailand and China. In China, the first four Depositary Receipt programs were established for the country: Shanghai Petrochemical raised capital in a public offering and listed its Depositary Receipts on the New York Stock Exchange, Shanghai Erfangji and Shanghai Tyre and Rubber established level-I over-the- counter traded programs and Maanshan Iron and Steel raised capital under 144A.
 "China is one of the most promising new markets. We expect a significant number of Depositary Receipt programs to be established over the next three years in China," said Joseph M. Velli, executive vice president in charge of The Bank of New York's Corporate Trust and Agency Services.
 UK, Mexican and Dutch companies were the most actively traded for the year. Trading volume for companies from South Africa, France, Argentina and Hong Kong also showed impressive gains. Since 1990, Depositary Receipt share volume has increased more than 65 percent while the dollar volume has more than doubled. The continued rise in Depositary Receipt trading demonstrates strong investor preference for Depositary Receipts when investing in non-U.S. equities.
 "1993 brought an unprecedented level of interest in international equity markets by U.S. investors including mutual funds, institutions and first time retail buyers. Latin American and Asian equity offerings drove much of the interest. This record level of demand helped many world markets reach all-time highs," said Mr. Velli. "U.S. investors prefer Depositary Receipts because of the cost advantage, convenience, and enhanced liquidity they offer compared with buying shares directly in a foreign market," Mr. Velli continued.
 In 1993, non-U.S. companies raised approximately $10 billion through nearly 50 Depositary Receipt offerings in the U.S. public markets, nearly double last year's $5.3 billion raised. Nearly half was raised by Latin American companies, specifically from Mexico and Argentina; while the majority of the remaining public capital was raised by European companies. In June, one of the largest Depositary Receipt offerings ever was completed by the Argentine government in the privatization of YPF S.A., the state-owned oil company. YPF S.A. raised $2.38 billion in the form of Depositary Receipts and listed on the New York Stock Exchange. Also in 1993, there were 33 Depositary Receipt private placements under rule 144A which raised over $2 billion. Of the Depositary Receipt capital raised under 144A, approximately 40 percent was raised by companies from Asia, 30 percent by Latin American companies and 30 percent by European companies.
 During 1993, The Bank of New York continued to expand its leadership position by establishing, for the fourth consecutive year, over 60 percent of the new sponsored programs and handling the majority of public offerings and privatizations. The Bank of New York acted as depositary for many of the year's most notable programs including YPF of Argentina, Coca-Cola Femsa of Mexico, Shanghai Petrochemical and Shanghai Erfangji of China, CS Holding of Switzerland, Credito Italiano of Italy, Societe Generale of France, Southern Petrochemical Industries of India, and Commonwealth Bank of Australia.
 "We anticipate 1994 will again be another record year for purchases of non-U.S. equities by investors. Strong support for this demand will come from the continued trend of privatizations globally as well as the many emerging markets," Mr. Velli concluded.
 -0- 1/4/94
 /CONTACT: Joseph M. Velli, EVP, 212-815-2009, or Kenneth A. Lopian, SVP, 212-815-2084, both of The Bank of New York, Depositary Receipt Div./
 (BK)


CO: The Bank of New York ST: New York IN: FIN SU:

TM -- NY002 -- 8806 01/04/94 09:57 EST
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Publication:PR Newswire
Date:Jan 4, 1994
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