MENA investment banking fees up 4% at $895.7mln in nine months: Refinitiv

The value of announced M&A transactions with any MENA involvement reached $58.0 billion during the first nine months of 2020, according to the gloabal data provider

  
Man using laptop at desk in home office. Image used for illustrative purpose.

Man using laptop at desk in home office. Image used for illustrative purpose.

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Investment banking fees generated in the Middle East and North Africa (MENA) reached an estimated $895.7 million during the first nine months of 2020, up 4% from the same period in 2019 to the highest year-to-date total since 2008, data from Refinitiv revealed.

According to the global data provider, a $361.4 million worth of advisory fees were earned from completed M&A transactions in the region during the first nine months of 2020, up 23 percent from last year to the highest year-to-date total since our records began in 2000.

The value of announced M&A transactions with any MENA involvement reached $58.0 billion during the first nine months of 2020. It marked the third highest year-to-date total of all-time, despite falling 52 percent in value from the record high achieved last year with Saudi Aramco’s agreement to buy a stake in Saudi Basic Industries Corp for $69.1 billion.

Debt capital markets underwriting fees also increased from last year, up 2 percent to $211.7 million, the second highest year-to-date total since our records began. Meanwhile, equity capital markets underwriting fees declined 20 percent to $44.6 million, marking the lowest first nine-month total for equity fees in the region in four years.

Syndicated lending fees fell 8 percent to a five-year low of $278.0 million.

Government & Agency fees accounted for 35 percent of total investment banking fees earned in the region during the first nine months of 2020, up from 24% during the same period last year. The UAE generated the most fees, a total of $361.0 million accounting for 40 percent, followed by Saudi Arabia with $268.3 million.

HSBC earned the most investment banking fees in the region during the first nine months of 2020, a total of $91.1 million or a 10 percent share of the total fee pool.

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(Reporting by Seban Scaria; editing by Daniel Luiz)

(seban.scaria@refinitiv.com)

Disclaimer: This article is provided for informational purposes only. The content does not provide tax, legal or investment advice or opinion regarding the suitability, value or profitability of any particular security, portfolio or investment strategy. Read our full disclaimer policy here.

© ZAWYA 2020

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