DUBAI: Bolstered by Saudi Arabia’s $9 billion international Islamic bond in April and Kuwait’s $8 billion debut international bond sale in March, Middle Eastern debt issuance reached $57.40 billion during the first half of 2017, 53% more than the proceeds raised during the same period last year and by far the best annual start in the region since records began in 1980, said a report.
According to the report released by Thomson Reuters, Saudi Arabia was the most active nation in the Middle East accounting for 21 percent of activity by value, followed by Kuwait with 18 percent. International Islamic debt issuance increased 50 percent year-on-year to reach $31.40 billion so far during 2017.
The report said Middle Eastern investment banking fees totaled an estimated $462.10 million during the first six months of 2017, 15 percent less than the value of fees recorded during the same period in 2016.
Debt capital markets underwriting fees totaled $136.90 million, up 88 percent year-on-year and the highest first half total in the region since our records began in 2000, said the report.
Nadim Najjar, Managing Director, Middle East and North Africa, Thomson Reuters, said: “Equity capital markets fees increased 36 percent to $39.70 million. Fees generated from completed merger and acquisition (M&A) transactions totaled $98 million, a 20 percent decrease from last year and the lowest first six-month total since 2012. Syndicated lending fees declined 41 percent year-on-year to $187.60 million, a three-year low.”
“Debt capital markets fees accounted for 30 percent of the overall Middle Eastern investment banking fee pool, the highest first half share since 2001. Syndicated lending fees accounted for 41 percent, while completed M&A advisory fees and equity capital markets underwriting fees accounted for 21 percent and 9 percent, respectively,” he added.
The value of announced M&A transactions with any Middle Eastern involvement reached $20.10 billion during the first six months of 2017, 8 percent more than the value recorded during the first half of 2016. US chemical maker Tronox’s $2.20 billion acquisition of a Saudi Arabian titanium dioxide business is the largest deal to be announced so far during 2017, boosting inbound M&A to $6.6 billion, the highest first half total in 11 years.
Domestic and inter-Middle Eastern M&A declined 46 percent year-on-year to $2.8 billion, while outbound M&A activity dropped 13 percent to $8.3 billion. Energy & Power deals accounted for 41 percent of Middle Eastern involvement M&A by value, while the financial sector dominated by a number of deals. Six of the largest 10 deals announced in the region so far during 2017 were energy deals, the largest being Saudi Aramco’s Saudi Refining unit’s $2.2 billion payment to Royal Dutch Shell in the breakup of their oil refining joint venture Motiva Enterprises.
According to Thomson Reuters estimates, Middle Eastern equity and equity-related issuance totaled $1 billion during the six months of 2017, a 72 percent decline year-on-year and the lowest annual start for issuance in the region since 2004. Five initial public offerings (IPOs) raised $603.30 million and accounted for 60 percent of first half ECM activity in the region.
According to the report released by Thomson Reuters, Saudi Arabia was the most active nation in the Middle East accounting for 21 percent of activity by value, followed by Kuwait with 18 percent. International Islamic debt issuance increased 50 percent year-on-year to reach $31.40 billion so far during 2017.
The report said Middle Eastern investment banking fees totaled an estimated $462.10 million during the first six months of 2017, 15 percent less than the value of fees recorded during the same period in 2016.
Debt capital markets underwriting fees totaled $136.90 million, up 88 percent year-on-year and the highest first half total in the region since our records began in 2000, said the report.
Nadim Najjar, Managing Director, Middle East and North Africa, Thomson Reuters, said: “Equity capital markets fees increased 36 percent to $39.70 million. Fees generated from completed merger and acquisition (M&A) transactions totaled $98 million, a 20 percent decrease from last year and the lowest first six-month total since 2012. Syndicated lending fees declined 41 percent year-on-year to $187.60 million, a three-year low.”
“Debt capital markets fees accounted for 30 percent of the overall Middle Eastern investment banking fee pool, the highest first half share since 2001. Syndicated lending fees accounted for 41 percent, while completed M&A advisory fees and equity capital markets underwriting fees accounted for 21 percent and 9 percent, respectively,” he added.
The value of announced M&A transactions with any Middle Eastern involvement reached $20.10 billion during the first six months of 2017, 8 percent more than the value recorded during the first half of 2016. US chemical maker Tronox’s $2.20 billion acquisition of a Saudi Arabian titanium dioxide business is the largest deal to be announced so far during 2017, boosting inbound M&A to $6.6 billion, the highest first half total in 11 years.
Domestic and inter-Middle Eastern M&A declined 46 percent year-on-year to $2.8 billion, while outbound M&A activity dropped 13 percent to $8.3 billion. Energy & Power deals accounted for 41 percent of Middle Eastern involvement M&A by value, while the financial sector dominated by a number of deals. Six of the largest 10 deals announced in the region so far during 2017 were energy deals, the largest being Saudi Aramco’s Saudi Refining unit’s $2.2 billion payment to Royal Dutch Shell in the breakup of their oil refining joint venture Motiva Enterprises.
According to Thomson Reuters estimates, Middle Eastern equity and equity-related issuance totaled $1 billion during the six months of 2017, a 72 percent decline year-on-year and the lowest annual start for issuance in the region since 2004. Five initial public offerings (IPOs) raised $603.30 million and accounted for 60 percent of first half ECM activity in the region.
