DOHA: Middle Eastern investment banking fees reached $722.2m during 2013. The value of announced M&A transactions with any Middle Eastern involvement reached $43.4bn during 2013, seven percent more than the $40.7bn witnessed in the region during 2012, and marking the best full year total since 2010, Thomson Reuters’ full year investment banking analysis for the Middle East region in 2013 yesterday noted.
Nadim Najjar, Managing Director, Middle East, Africa, and Russia/CIS, said: “ Middle Eastern companies raised $4.2bn of equity during 2013, a 39 percent decline from 2012 ($6.9bn), while Middle Eastern debt issuance reached $8.1bn during fourth quarter of 2013, up 82 percent from the previous quarter. Despite the quarterly uptick, only one-third of 2013 activity was seen during the second half of the year.”
Najjar pointed out that the investment banking fees increased by 20 percent over the $602.6m seen during 2012 recording the highest annual total in the region since 2010.
“Investment banking fees from completed M&A transactions totalled $212.8m, up 22 percent from 2012 ($174.0m), and accounting for 29 percent of the overall fee pool. Fees from debt capital markets underwriting hit $144.1m, up 44 percent from $100.0m during the previous year. Equity capital markets underwriting fees totalled $62.4m, down 43 percent from 2012 ($108.9m) and the lowest annual total since 2003. Investment banking fees from syndicated lending increased 38 percent to $303.0m, accounting for 42 percent of total Middle Eastern fees, the highest share since 2004.”
In respect to Mergers and Acquisitions, Najjar pointed out that 2013 marked the best full year total since 2010.
Inbound M&A totalled $6.1bn, down three percent from the previous year. Egypt was the most popular target, while China registered the highest value of inbound M&A deals targeting the Middle East. Outbound M&A increased 11 percent from this time last year to total $14.8bn. As sole advisor on the aluminium merger, Morgan Stanley topped the 2013 announced any Middle Eastern involvement M&A league table with $12.7bn.”
In the area of equity capital markets, the Middle Eastern companies raised $4.2bn during 2013, a 39 percent decline from 2012 ($6.9bn), led by an 80 percent drop in follow-on offerings.
On the debt capital market activity in 2013, Najjar said: “Despite the quarterly uptick, only one-third of 2013 activity was seen during the second half of the year. Debt issuance in the region throughout 2013 totalled $38.6bn, nearly levelling 2012’s total of $38.8bn. Investment grade corporate debt totalled $27.4bn and accounted for 71 percnet of the annual total.”
The United Arab Emirates was the most active nation accounting for two-fifths of activity, followed by Saudi Arabia with 22 percent. International Islamic debt issuance declined 11 percent from 2012 to reach $32.5bn during 2013.
HSBC took the top spot in the Middle Eastern bond ranking during 2013 with a 16 perecent share of the market.
The Peninsula
