Sub-Saharan African investment banking fees up 10% in first half of 2015 to USD 155 mn
According to the Thomson Reuters quarterly investment banking analysis, Sub-Saharan African investment banking fees were up 10% in the first half of 2015 to USD 155 million compared to the same period last year.
The Thomson Reuters quarterly investment banking analysis shows that Sub-Saharan African investment banking fees were up 10% in the first half of 2015 to hit USD 155 million compared to the same period last year.
Rand Merchant Bank (RMB) earned the bulk of this fees with a total of USD 21 million giving it a 13% share of the total fee pool. It also topped equity capital markets underwriting fees; while Citi and JP Morgan earned first places for debt capital markets underwriting and syndicated loans fees, respectively.
Investec topped the completed merger & acquisitions (M&A) fee rankings during the first half of 2015.
According to the quarterly investment banking analysis, Sub-Saharan African equity and equity-related issuance reached USD 1 billion during the second quarter of 2015, 60% less than the value recorded during the first quarter of the year.
“Sub-Saharan African debt issuance reached USD 3.2 billion during the second quarter of 2015, 23% less than the value raised during the previous quarter and the lowest quarterly total since the first quarter of 2014,” read part of the statement.
Sneha Shah, managing director, Africa, Thomson Reuters, said the value of announced M&A transactions with any Sub-Saharan African involvement reached USD 15.3 billion during the first half of 2015, 12% more than the value registered during the same period in 2014.
According to Shah, outbound activity reached a four-year high, up 13% from the first six months of 2014 to reach USD 3.3 billion.
“South Africa’s overseas acquisitions accounted for 65% of Sub-Saharan African outbound M&A activity, while acquisitions by Mauritian and Nigerian companies accounted for 13% and 11%, respectively,” said Shah.
“Domestic and inter-Sub-Saharan African M&A fell 11% year-on-year to USD 3.8 billion, the lowest first half total since 2007. Inbound M&A also saw a decline, down 7% to USD 4 billion. Energy & power was the most active sector, accounting for 18% of Sub-Saharan African involvement M&A,” she added.
According to the statement, the largest deal with Sub-Saharan African involvement during the first half of 2015 was the USD 1.2 billion offer from Brait Mauritius for a 90% interest in British retailer New Look.
The estimate also saw Rand Merchant Bank top the 1H 2015 M&A league table with USD 4.4 billion.