Middle East debt issuance doubles in Q1 2012

by -
1862
Debt issuance in the Middle East was $11 billion during the first three months of 2012 says Thomson Reuters. Picture: Dubai's skyline

Debt issuance in the Middle East doubled in the first quarter of 2012 while investment banking fees declined, according to Thomson Reuters’ Q1 report for the Middle East.

The media giant’s investment banking analysis, released this week, revealed that debt issuance was $11 billion during the first three months of 2012, almost double the $5.7 billion registered during the same period last year.

The report said that Investment grade corporate debt accounted for 81 per cent of all Middle East (GCC and other regional countries) DCM activity during the quarter, while high yield accounted for 10 per cent.

Investment banking fees, still feeling the effects of the Arab Spring that started more than a year ago, declined eight per cent to $90.9 million, the review said. Mergers & acquisitions rose 22 per cent to $4.9 billion while equity capital issuance was more than $1 billion, representing a 21 per cent drop.

Thomson Reuters’ report is based on the activities of Middle East investment banks in debt and equity capital markets for conventional and Islamic banking. Data is drawn from dedicated regional rankings of banks as well as from deals and fees of banks and advisors operating in the region.

The company quoted its managing director for Middle East & Africa, Russell Haworth, as saying: “Investment banking fees fell this quarter continuing last year’s trend as the Arab Spring continues to take its toll on the banking sector. This quarter was the lowest quarter for fees in the region since the second quarter of 2005.”

The review also said fees for mergers and acquisitions during 2012 Q1, which accounted for 51 per cent of the overall fee pool, totalled $46.2 million, down 42 per cent from the same period last year. Debt capital markets (DCM) fee activity in was more than five times higher at $36.2 million. Fees from syndicated lending and ECM totalled $5.9 million and $2.6 million respectively.

The report added that Deutsche Bank earned 13.1 per cent of the fees to top the Middle Eastern DCM fee rankings during Q1 while HSBC led the M&A fee rankings with $5.3 million.

Telecoms was the most popular sector for M&As with $1.8 billion, or 36 per cent of total activity.



Support ASEAN news

Investvine has been a consistent voice in ASEAN news for more than a decade. From breaking news to exclusive interviews with key ASEAN leaders, we have brought you factual and engaging reports – the stories that matter, free of charge.

Like many news organisations, we are striving to survive in an age of reduced advertising and biased journalism. Our mission is to rise above today’s challenges and chart tomorrow’s world with clear, dependable reporting.

Support us now with a donation of your choosing. Your contribution will help us shine a light on important ASEAN stories, reach more people and lift the manifold voices of this dynamic, influential region.

$
Personal Info

Donation Total: $10.00

 

 

[caption id="attachment_2832" align="alignleft" width="300" caption="Debt issuance in the Middle East was $11 billion during the first three months of 2012 says Thomson Reuters. Picture: Dubai's skyline"][/caption] Debt issuance in the Middle East doubled in the first quarter of 2012 while investment banking fees declined, according to Thomson Reuters’ Q1 report for the Middle East. The media giant’s investment banking analysis, released this week, revealed that debt issuance was $11 billion during the first three months of 2012, almost double the $5.7 billion registered during the same period last year. The report said that Investment grade corporate debt accounted for 81...

Debt issuance in the Middle East was $11 billion during the first three months of 2012 says Thomson Reuters. Picture: Dubai's skyline

Debt issuance in the Middle East doubled in the first quarter of 2012 while investment banking fees declined, according to Thomson Reuters’ Q1 report for the Middle East.

The media giant’s investment banking analysis, released this week, revealed that debt issuance was $11 billion during the first three months of 2012, almost double the $5.7 billion registered during the same period last year.

The report said that Investment grade corporate debt accounted for 81 per cent of all Middle East (GCC and other regional countries) DCM activity during the quarter, while high yield accounted for 10 per cent.

Investment banking fees, still feeling the effects of the Arab Spring that started more than a year ago, declined eight per cent to $90.9 million, the review said. Mergers & acquisitions rose 22 per cent to $4.9 billion while equity capital issuance was more than $1 billion, representing a 21 per cent drop.

Thomson Reuters’ report is based on the activities of Middle East investment banks in debt and equity capital markets for conventional and Islamic banking. Data is drawn from dedicated regional rankings of banks as well as from deals and fees of banks and advisors operating in the region.

The company quoted its managing director for Middle East & Africa, Russell Haworth, as saying: “Investment banking fees fell this quarter continuing last year’s trend as the Arab Spring continues to take its toll on the banking sector. This quarter was the lowest quarter for fees in the region since the second quarter of 2005.”

The review also said fees for mergers and acquisitions during 2012 Q1, which accounted for 51 per cent of the overall fee pool, totalled $46.2 million, down 42 per cent from the same period last year. Debt capital markets (DCM) fee activity in was more than five times higher at $36.2 million. Fees from syndicated lending and ECM totalled $5.9 million and $2.6 million respectively.

The report added that Deutsche Bank earned 13.1 per cent of the fees to top the Middle Eastern DCM fee rankings during Q1 while HSBC led the M&A fee rankings with $5.3 million.

Telecoms was the most popular sector for M&As with $1.8 billion, or 36 per cent of total activity.



Support ASEAN news

Investvine has been a consistent voice in ASEAN news for more than a decade. From breaking news to exclusive interviews with key ASEAN leaders, we have brought you factual and engaging reports – the stories that matter, free of charge.

Like many news organisations, we are striving to survive in an age of reduced advertising and biased journalism. Our mission is to rise above today’s challenges and chart tomorrow’s world with clear, dependable reporting.

Support us now with a donation of your choosing. Your contribution will help us shine a light on important ASEAN stories, reach more people and lift the manifold voices of this dynamic, influential region.

$
Personal Info

Donation Total: $10.00

 

 

NO COMMENTS

Leave a Reply