Middle Eastern debt issuance hits new high

19 January 2014

Debt capital market issuance reached $8.1bn in fourth quarter

Middle Eastern debt capital market (DCM) issuance grew by 82 per cent in the fourth quarter of last year compared to the same period in 2012.

DCM issuance in the final three months of 2013 reached $8.1bn, according to the latest data from Thomson Reuters.

Across the whole year, DCM issuance hit $38.6bn, which almost equals 2012’s total of $38.8bn. The UAE was the most active regional power in the debt capital markets, followed by Saudi Arabia.

Banking fees from debt capital markets underwriting hit $144.1m for the full year 2013, marketing an increase of 44 per cent on the previous year. It is the best annual total for DCM fees in the Middle East since 2010.

Last year also saw an uptick in the value and number of mergers and acquisitions (M&A) in the Middle East. M&A activity reached $43.4bn, an increase of 7 per cent on the previous year, according to Thomson Reuters data.

It was the most active 12 months for M&A deals in the region since 2010.

Investment banking fees from completed M&A transactions totaled $212.8m, an increase of 22 per cent on 2012 and accounted for 29 per cent of the overall fee pool.

The regional M&A market was bolstered by the $7.5bn merger of UAE state-owned aluminum producers Emirates Aluminium (Emal) and Dubai Aluminium (Dubal) in June last year.

 

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