(MENAFN- Khaleej Times) Investment banking fees up 5% at $182 million during first quarter.
Dubai: The value of announced mergers and acquisitions transactions with Middle Eastern involvement jumped more than 150 per cent to $9.5 billion in the first quarter of 2015 compared to the same period last year according to a banking analysis released by Reuters on Monday.
The significant increase in transactions also pushed the fees in an upward direction. According to estimates from Thomson Reuters/Freeman Consulting Middle Eastern investment banking fees reached $182 million during the first quarter of 2015 five per cent more than the value recorded during the previous quarter and a 20 per cent increase from the same period in 2014.
Nadim Najjar managing director for the Mena at Thomson Reuters said: “The value of announced M&A transactions with any Middle Eastern involvement reached $9.5 billion during the first quarter of 2015 less than half the value registered during the previous quarter but marking a 152 per cent increase from the first three months of 2014 and the best annual start since 2012.”
“Middle Eastern equity and equity-related issuance totalled $2.5 billion during the first three months of 2015 59 per cent less than the value recorded during the previous quarter. Compared to the same period in 2014 Middle Eastern ECM increased 179 per cent and marked the best first quarter by proceeds raised since 2008. Initial public offerings raised $224.6 million and accounted for nine per cent of activity in the region” Najjar added.
He pointed out that Middle Eastern debt issuance reached $6.5 billion during the first quarter of 2015 62 per cent more than the value raised during the previous quarter. Compared to the first quarter of 2014 bond issuance decreased 15 per cent and marked the lowest first quarter total since 2011.
He further noted: “The UAE was the most active nation accounting for 78 per cent of activity followed by Saudi Arabia with 16 per cent. International Islamic debt issuance declined 13 per cent year-on-year to reach $8.9 billion. HSBC took the top spot in the Middle Eastern bond ranking during the first quarter of 2015 with a 13 per cent share of the market.”
In respect to investment banking syndicated lending fees saw the most growth from last year increasing 91 per cent to $52.2 million. Fees from completed M&A transactions totalled $73.8 million a 13 per cent increase from last year and the best annual start since 2009. M&A fees accounted for 41 per cent of the overall first quarter Middle Eastern investment banking fee pool.
Equity capital markets underwriting fees totalled $37 million down two per cent from the first three months of 2014 while fees from debt capital markets underwriting declined 12 per cent year-on-year to $19.1 million.
Citi earned the most investment banking fees in the Middle East during the first quarter of 2015 a total of $22.5 million for a 12.3 per cent share of the total fee pool. Citi topped the Middle Eastern completed M&A fee league table while Deutsche Bank was first for ECM underwriting and Emirates NBD was first in the DCM underwriting fee rankings. Banque Saudi Fransi took the top spot in the Middle Eastern syndicated loans fee ranking.
Mergers and acquisitions were active in the first quarter. Outbound M&A drove activity up 161 per cent from the same period in 2014 to reach $4 billion the highest first quarter total since 2011. Qatar’s overseas acquisitions accounted for 48 per cent of Middle Eastern outbound M&A activity while acquisitions by UAE and Saudi Arabian companies accounted for 27 per cent and 14 per cent respectively. Domestic and inter-Middle Eastern M&A increased 261 per cent year-on-year to $2.4 billion. Inbound M&A also saw a marked increased up 129 per cent to $1.2 billion. Industrials was the most active sector accounting for 33 per cent of Middle Eastern involvement in M&A.
The largest deal with Middle Eastern M&A involvement during the first quarter of 2015 was the $1.9 billion offer for the remaining stake in Canary Wharf Group by Stork Holdings jointly owned by Qatar Investment Authority and Brookfield Property Partners.
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.