Middle East and Africa (MEA) 2018 Investment Banking Report

21 January 2019 | Investments | General | Refinitiv

Refinitiv, one of the world’s largest providers of financial markets data and infrastructure, released the 2018 Investment Banking Fees for the Middle East and Africa region.

SUB-SAHARAN AFRICA ANALYSIS

Investment Banking Fees – Sub-Saharan African investment banking fees reached an estimated US$535.1 million during 2018, 2% less than the value recorded in 2017. Fees from completed Merges and Acquisitions (M&A) transactions totalled US$139.8 million, a 32% increase year-on-year and the highest annual total since 2015. Equity capital markets (ECM) underwriting reached US$89.8 million, down 38% from 2017 to a 5-year low. Syndicated lending fees increased 2% to US$204.3 million, while fees from debt capital markets (DCM) underwriting increased 5% to US$101.2 million during 2018. Debt capital markets underwriting fees accounted for 19% of the overall Sub-Saharan African investment banking fee pool, the highest share since 2012. Completed M&A and equity capital markets generated 26% and 17%, respectively, while syndicated lending fees accounted for 38%.?Rand Merchant Bank earned the most investment banking fees in Sub-Saharan Africa during 2018, a total of US$48.5 million or a 9.1% share of the total fee pool. The bank topped both the completed M&A and the Syndicated Loans fee rankings in 2018. Standard Bank Group lead the ECM underwriting fee ranking, while Citi took first place for DCM underwriting fees.

• Investment banking fees were 2% less in 2018 vs 2017
• Merges and Acquisitions transactions were 12% down in 2018 vs 2017 and reached a 6-year low
• Equity and equity-related issuance was 50% less in 2018 vs 2017 – lowest annual total since 2013
• Debt issuance for 2018 was up 18% vs 2017 – highest annual total since our records began

MIDDLE EASTERN & NORTH AFRICAN ANALYSIS

Investment Banking Fees – Middle Eastern and North African investment banking fees totalled an estimated US$1.1 billion during 2018, 4% more than the value of fees recorded during 2017. Debt capital markets underwriting fees totalled US$217.3 million, down 21% year-on-year but still the second highest fee volume for the region since our records began in 2000. Equity capital markets fees decreased 13% to US$107.7 million. Fees generated from completed M&A transactions totalled US$177.5 million, a 22% decrease from last year and the lowest full year total since 2012. Syndicated loan fees reached US$554.4 million, up 41% from 2017.?Debt capital markets fees accounted for 21% of the overall Middle Eastern and North African investment banking fee pool, the second highest market share since 2001. Syndicated lending fees accounted for 52% while the share of completed M&A advisory fees fell to its lowest level on record, only accounting for 17% of the market. Equity capital markets underwriting fees accounted for 10%.?HSBC earned the most investment banking fees in the Middle East & North Africa during 2018, a total of US$82.6 million for a 7.8% share of the total fee pool; also leading in the Syndicated Loans league table. Goldman Sachs topped the completed M&A fee rankings with an 18.2% market share. ECM underwriting was led by Qatar National Bank with US$16.2 million in fees or a 15% share while Standard Chartered leads in the DCM space with US$34 million during 2018.

• Investment banking fees were 4% higher in 2018 vs 2017
• Merges and Acquisitions transactions were 50% more in 2018 vs 2017 and it hit a 3-year high
• Equity and equity-related issuance saw a 42% increase YoY
• 2018 Debt issuance was 18% lower in 2017, however it is at its second highest levels since our records began