Dubai: Middle Eastern investment banking fees reached $535.9 million during the first nine months of 2013, up 22 per cent over the same period last year, and the best first nine months for fees in the region since 2009, according data compiled by Thomson Reuters.
“This is the best first nine months for fees in the region since 2009. Fees from completed M&A transactions fees totalled $150.2 million, up 37 per cent from the first nine months of 2012,” said Russell Haworth, managing director, Middle East & North Africa at Thomson Reuters.
Fees from debt capital markets (DCM) underwriting in the region hit $112.7 million, up 75 per cent from $64.5 million during the same period last year, and marking the best first nine months for DCM fees in the Middle East of all time.
HSBC earned the most investment banking fees in the Middle East during the first nine months of 2013, a total of $35.9 million. “We have long prioritised emerging market investment banking and positioned our very best people in these growth markets”, said Georges Elhedery, Head of Markets and Capital Financing, Mena. “As a leading international bank this enables us to consistently connect our clients to the most interesting global opportunities.”
Morgan Stanley topped the Middle Eastern M&A fee league table with an 8.8 per cent share. JP Morgan took first place in the Middle Eastern equity capital market (ECM) fee ranking, while Deutsche Bank topped the DCM fee ranking.
The value of announced M&A transactions with any Middle Eastern involvement reached $29 billion during the first nine months of 2013, 3 per cent more than the $28.2 billion reported during the same period last year.
Middle Eastern companies raised $4 billion from 15 equity issues during the first nine months of 2013, a 36 per cent decline from the same period in 2012 ($6.2 billion). Initial public offerings, worth a combined total of $2.2 billion, accounted for 54 per cent of ECM activity in the region.
According to Deloitte Middle East’s recent Equity Capital Markets Confidence Survey, more than 70 per cent of regional equity market leaders expect increased volume of IPOs in next 12 month. With the inclusion of some key regional indices in the MSCI, analysts expect equity issues to pick up pace. “We do expect more foreign investors to be attracted to these upgraded markets over the coming year, especially if corporates listed on these exchanges provide attractive returns, good governance and transparency,” said Adnan Fazli, equity capital markets leader at Deloitte Corporate Finance Limited, in the Mena region.
Third quarter was relatively slow for debt issuance from the region. Middle Eastern debt issuance reached $4.5 billion during third quarter of 2013, down 68 per cent from the previous quarter and marking the lowest quarterly total in the region since the third quarter of 2011. “Despite the slow third quarter, debt issuance in the region totalled $30.5 billion during the first nine months of 2013, a 22 per cent increase over the same period last year, and the strongest first nine months in the region on record,” said Haworth.
The most active nation for Middle Eastern debt issuance was the UAE with 40 per cent, followed by Saudi Arabia with 23 per cent.
