26/10/2014 05:50 AST
During the first nine months of 2014, Middle Eastern investment banking fees reached $138.2 according to estimates from Thomson Reuters/Freeman Consulting, 60 per cent less than the value recorded during the previous quarter. In respect to the Mergers and Acquisitions (M&A) activity, the value of announced M&A transactions with any Middle Eastern involvement reached $11.8 billion during the third quarter of 2014, an 18 per cent decline from the value registered during the previous quarter. Nadim Najjar, Managing Director, Middle East & North Africa, Thomson Reuters, said: “Middle Eastern equity and equity-related issuance during the first nine months of 2014 totalled $5.1 billion, a 43 per cent increase in activity from the same period in 2013 ($3.6 billion).”
He added: “Middle Eastern debt issuance reached $6.3 billion during the third quarter of 2014, down 68 per cent from the record-breaking second quarter total of $19.7 billion. Boosted by the strong second quarter, bonds issued so far during 2014 increased 5 per cent from the same period last year, to $32.8 billion.”
Despite the quarterly downturn, fees earned so far during 2014 saw a slight uptick from last year, from $631.7 million during the first nine months of 2013 to $633.1 million, marking the best first nine months for Middle Eastern fees since 2008.
Equity capital markets underwriting fees totalled $134.5 million, up 183 per cent from the same period last year ($47.5 million), and marking the best first nine month total for ECM fees in the Middle East since 2009. ECM fees accounted for 21 per cent of the fee pool. Fees from completed M&A transactions totalled $143.9 million, down 14 per cent from the same period in 2013 and accounting for 23 per cent of this year’s overall Middle Eastern fee pool. Fees from debt capital markets underwriting declined 20 per cent year-on-year to $95.3 million, while syndicated lending fees fell 13 per cent to $259.4 million.
HSBC earned the most investment banking fees in the Middle East during the first nine months of 2014, a total of $38.3 million for a 6.1 per cent share of the total fee pool. Lazard topped the Middle Eastern completed M&A fee league table, while Qatar National Bank was first in the ECM underwriting fee rankings. HSBC and Mizuho Financial Group took the top spots in the Middle Eastern DCM and loans fee rankings, respectively.
Speaking about the M&A activity, Najjar said: “Despite the quarterly downturn, M&A during the first nine months of 2014 increased 2 per cent from the same period last year to $29.9 billion. Domestic and inter-Middle Eastern M&A declined 44 per cent to $8.3 billion during the first nine months of 2014. Inbound M&A also declined, falling 7 per cent to $5.0 billion. Outbound M&A drove activity, up 67 per cent from this time last year to reach $10.7 billion, the highest first nine month total since 2011.”
“Qatar’s overseas acquisitions accounted for 45 per cent of Middle Eastern outbound M&A activity, while acquisitions by UAE and Saudi Arabian companies accounted for 25 per cent and 22 per cent, respectively.
The largest deal during the third quarter of 2014 was a $3.2 billion offer for pay TV operator Orbit Showtime Network by an undisclosed US-based private equity firm. Bank of America Merrill Lynch topped the 3Q 2014 announced any Middle Eastern involvement M&A league table with $4.3 billion,” he noted.
For more on this
Click Here
Oman Daily Observer
Please wait...
