Sub-Saharan African investment banking fees were up 10 per cent in the first half of 2015 (reaching 155 million US dollars) compared to the same period last year; this is according to the Thompson Reuters quarterly investment banking analysis.
Rand Merchant Bank (RMB) earned the bulk of these fees – a total of 21 million US dollars – giving it a 13 per cent 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 one billion US dollars during the second quarter of 2015, 60 per cent less than the value recorded during the first quarter of the year.
“Sub-Saharan African debt issuance reached 3.2 billion US dollars during the second quarter of 2015, 23 per cent 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 15.3 billion US dollars during the first half of 2015, 12 per cent more than the value registered during the same period in 2014.
According to Shah, outbound activity reached a four-year high, up 13 per cent from the first six months of 2014 to reach 3.3 billion US dollars.
“South Africa’s overseas acquisitions accounted for 65 per cent of Sub-Saharan African outbound M&A activity, while acquisitions by Mauritian and Nigerian companies accounted for 13 per cent and 11 per cent, respectively,” said Shah.
“Domestic and inter-Sub-Saharan African M&A fell 11 per cent year-on-year to 3.8 billion US dollars, the lowest first half total since 2007. Inbound M&A also saw a decline, down seven per cent to four billion US dollars. Energy & power was the most active sector, accounting for 18 per cent 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 1.2 billion US dollars offer from Brait Mauritius for a 90 per cent interest in British retailer New Look.
The estimate also saw Rand Merchant Bank top 1H 2015 M&A league table with 4.4 billion US dollars.