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Fri 17 Apr 2015 01:07 AM

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MidEast investment banking fees hit $182m in Q1

New report reveals 5% rise compared to Q4 2014 and 20% increase on year-earlier period

MidEast investment banking fees hit $182m in Q1

Middle Eastern investment banking fees totalled $182 million during the first quarter of 2015, five percent more than the value recorded during the previous quarter and a 20 percent increase from the same period in 2014, according to a new report.

Syndicated lending fees saw the most growth from last year, increasing 91 percent to $52.2 million. Fees from completed M&A transactions totalled $73.8 million, a 13 percent increase from last year and the best annual start since 2009.

Equity capital markets underwriting fees totalled $37 million, down 2 percent from the first three months of 2014, while fees from debt capital markets underwriting declined 12 percent year-on-year to US$19.1 million.

According to estimates from Thomson Reuters and Freeman Consulting, Citi earned the most investment banking fees in the Middle East during the first quarter of 2015, a total of $22.5 million for a 12.3 percent share of the total fee pool.

The report said the value of announced merger and acquisition (M&A) transactions with any Middle Eastern involvement reached $9.5 billion during Q1, less than half the value registered during the previous quarterbut up by 152 percent from the year-earlier period.

The figures represented the best annual start since 2012, said Nadim Najjar, managing director, MENA, Thomson Reuters.

He added: "Middle Eastern equity and equity-related issuance totalled $2.5 billion during the first three months of 2015, 59 percent less than the value recorded during the previous quarter."

Compared to the same period in 2014, Middle Eastern ECM increased 179 percent and marked the best first quarter by proceeds raised since 2008.

Initial public offerings raised $224.6 million and accounted for 9 percent of activity in the region, said Najjar.

Middle Eastern debt issuance reached $6.5 billion during the first quarter of 2015, up 62 percent on the previous quarter but down 15 percent on Q1 2014.

He added: "The United Arab Emirates was the most active nation accounting for 78 percent of activity, followed by Saudi Arabia with 16 percent. International Islamic debt issuance declined 13 percent year-on-year to reach $8.9 billion."

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