Apr 15 2012
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Middle East debt issuance almost doubles to US$11 billion in Q1 2012
Thomson Reuters Q1 2012 regional investment banking review shows debt issuance nearly doubles to US$11 billion and M&A reaches US$4.9 billion, whilst equity capital market issuances and banking fees fall to almost US$1 billion and US$91 million respectively
Dubai, 15 April 2012 - Thomson Reuters today released its first quarter 2012 investment banking analysis for the Middle East region, which found debt issuance reached US$11.0 billion during the first quarter of 2012, nearly double the amount raised during the same period in 2011 (US$5.7 billion). Investment grade corporate debt accounted for 81% of all Middle Eastern DCM activity during the quarter, while high yield accounted for 10%.
The review examines the performance of the Middle East investment banking industry in the region's debt and equity capital markets, both conventional and Islamic. It includes dedicated regional rankings of banks and advisors operating in the Middle East based on their deals and fees.
In short the analysis of Middle East investment banking, drawn from Thomson Reuters ' data shows that compared with the same period in 2011:
- Debt issuance at US$11 billion - a near 100% increase
- Investment banking fees reached US$90.9 million - a 8% decline
- Mergers and acquisitions reached US$4.9 billion - a 22% rise
- Equity capital issuance was just over US$1 billion - a 21% fall
Deutsche Bank topped the Middle Eastern DCM fee rankings during the first quarter earning 13.1% of the fees while HSBC headed the M&A fee rankings with US$5.3 million.
In equity capital markets follow-ons accounted for 89% of quarterly activity and the top Middle Eastern ECM transaction was a US$313 million follow-on from Saudi Arabian telecoms company Etihad Atheeb. Financials remained the most active industry in the Middle East during the first quarter of 2012 with 36% of activity.
Telecoms and energy & power collectively accounted for 51% of ECM activity. Banque Saudi Fransi topped the Middle Eastern equity capital markets rankings, as sole-lead bookrunner for Etihad Atheeb's follow-on offering.
In terms of overall DCM, Islamic debt issuance reached US$7.7 billion from 14 issues. This was twice as much as during the first quarter in 2011. The top Islamic issuer continued to be Malaysia with 47% of the activity. Issuers in the financials sector accounted for 68% of Islamic DCM issuance during the first quarter of 2012. HSBC took the top spot in the Islamic bond ranking for the first quarter of 2012 with 6 issues, which raised US$1.9 billion.
A copy of the Thomson Reuters Deals Intelligence Middle Eastern Investment Banking Analysis (First quarter 2012) is attached in pdf format.
Middle East includes the following countries: Bahrain, Egypt, Iraq, Iran, Jordan, Kuwait, Lebanon, Oman, Qatar, Saudi Arabia, Syria, United Arab Emirates and Yemen.
Deal fees are calculated using Freeman Consulting's proprietary algorithm where spreads or fees are not disclosed. Deal fees are on a gross basis before all expenses. Each underwriter or advisor is allocated its share of deal fees using Freeman Consulting's allocation methodology, based on the number of underwriters or advisors on the deal and their role. No fees are allocated to syndicated members. Industry totals include fees on deals with undisclosed advisors.
A financial glossary of terms and concepts related to the financial markets can be found at www.glossary.reuters.com
Thomson Reuters is the world's leading source of intelligent information for businesses and professionals. We combine industry expertise with innovative technology to deliver critical information to leading decision makers in the financial and risk, legal, tax and accounting, intellectual property and science and media markets, powered by the world's most trusted news organization. With headquarters in New York and major operations in London and Eagan, Minnesota, Thomson Reuters employs approximately 60,000 people and operates in over 100 countries. Thomson Reuters shares are listed on the Toronto and New York Stock Exchanges. For more information, go to http://thomsonreuters.com.
About Thomson Reuters Deals Intelligence
Thomson Reuters Deals Intelligence, a part of Thomson Reuters Investment Banking division, brings up to the minute market intelligence to clients and the financial media through a variety of research reports including Daily Deals Insight, weekly Investment Banking Scorecard and industry-leading quarterly reviews highlighting trends in M&A and Capital Markets
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