The quarterly investment banking (IB) analysis for the Middle East issued by Reuters on Tuesday showed that the debt issuance in the Middle East reached $57.4bn during the first half (H1) of 2017, with a 53% increase in the proceeds raised during the same period last year, especially supported by Saudi Arabia’s $9bn international Islamic bond in April, and Kuwait’s $8bn debut international bond sale in March. “This is, by far, the best annual start in the region since records began in 1980,” the report said.
Total Middle Eastern investment banking fees reached $462.1m during the first six months of 2017, 15% less than the value of the fees recorded during the same period in 2016. Debt capital markets underwriting feed totaled $136.9m, up to 88% y-o-y, and this is considered the highest first half total in the region since Reuters records began in 2000, according to its report.
“Equity capital markets fees increased by 36% to $39.7m, while the fees generated from the completed mergers and acquisitions (M&A) advisory fees and equity capital markets underwriting fees accounted for 21% and 9% respectively,” said Nadim Najjar, the managing director of Reuters Middle East and North Africa (MENA).
As for the bank that earned the highest investment banking fees in the Middle East during the first six months of 2017, according to the report, is HSBC, which earned a total of $29.2m for a 6.3% share of the total fee pool. HSBC also topped H1 2017, announced any Middle Eastern involvement M&A league table. Morgan Stanley and Citibank took second and third places respectively.
UBS’ financial services have topped the completed M&A fee rankings, with 20% advisory fees, while JP Morgan was the first for debt capital market (DCM) underwriting. EFG Hermes led the equity capital market (ECM), with $12.4m in ECM fees or a 31% share.
The Industrial and Commercial Bank of China (ICBC) ranked first among the Middle Eastern syndicated loans fee ranking.
JP Morgan also took the top spot in the Middle Eastern bond ranking during H1 2017, with a 13.4% share of the market, while HSBC took the top spot for Islamic DCM with a 12.3% share.
The value of announced M&A transactions with any Middle Eastern involvement reached $20.1bn during H1 2017, 8% more than that ofH1 2016.
The largest deal to be announced in 2017 is the US chemical maker Tronox’s $2.2bn acquisition of a Saudi titanium dioxide business. It is expected to boost inbound M&A to $6.6bn, the highest first-half total in 11 years, according to Reuters.
Middle Eastern equity and equity-related issuances totaled $1bn during the six months of 2017, a 72% y-o-y decline and the lowest annual start for issuance in the region since 2004.
Dubai-based oil and gas production services firm ADES International Holding raised $243.5m on the London Stock Exchange in May, the largest IPO in the region so far this year. Follow-on offerings accounted for the remaining 40% of activity.
The National Bank of Kuwait (NBK) took the first place in H1 2017 Middle Eastern ECM ranking with a 24% market share, according to Reuters’ report.
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