M&A deals neared $34bn in MENA during Q2-18

M&A deals neared $34bn in MENA during Q2-18

Mubasher: Middle Eastern and North African investment banking fees totalled an estimated $472.3 million during the second quarter of the year, decreasing by 7% compared to Q2-17.

Meanwhile, debt capital markets reached $59.4 billion year-to-date, according to the report by Thomson Reuters on the investment banking analysis for the Middle East and North Africa (MENA) in the second quarter of 2018.

“Debt capital markets underwriting fees totalled US$140.6 million, down 7% year-on-year and the second highest start of the year the region since our records began in 2000. Equity capital markets fees increased 21% to US$56.4 million,” Said Nadim Najjar, the managing director for MENA in Thomson Reuters.

Fees generated from completed merging and acquisition (M&A) transactions totalled $59.6 million, a 52% decrease from last year and the lowest first half since 2012.

Syndicated loan fees reached$215.7 million, up 17% from Q2-17, the report indicated.

Debt capital markets fees accounted for 30% of the overall Middle Eastern and North African investment banking fee pool, the second highest market share since our records began in 2000.

Syndicated lending fees accounted for 46% while the share of completed M&A advisory fees fell to its lowest level, only accounting for 13% of the market.

Equity capital markets underwriting fees accounted for 12%. 

Citi earned the most investment banking fees in the MENA region during Q2-18, with a total of $44.8 million for a 9.5% share of the total fee poo.

DNB topped the completed ECM fee rankings with 14.2% of underwriting fees.

DCM underwriting was ledby Standard Chartered with $24.2 million in ECM fees, or a 17.2% share.

JP Morgan took the top spot in the Middle Eastern syndicated loans fee ranking.

MENA inbound M&A currently stands at an all-time high, thanks to the Saudi British Bank’s acquisition of the entire share of capital of Alawwal Bank for $5 billion.

On the other hand, outbound M&A decreased from $6.9 billion in Q2-17 to $6.6 billion so far this year.