Thomson Reuters, the world’s leading source of intelligent information for businesses and professionals, has released the quarterly investment banking analysis for the Sub Saharan Africa region.
According to estimates from Thomson Reuters / Freeman Consulting, Sub-Saharan African investment banking fees reached $154.7 million during the half of 2015, 10 percent more than the value recorded during the first six months of last year.
Sub-Saharan African equity and equity-related issuance totalled $1.0 billion during the second quarter of 2015, 60 percent less than the value recorded during the first quarter of the year.
Sub-Saharan African debt issuance reached $3.2 billion during the second quarter of 2015, 23 percent less than the value raised during the previous quarter and the lowest quarterly total since the first quarter of 2014.
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 during the first half of 2015, 12 percent more than the value registered during the same period in 2014. Outbound activity reached a four-year high, up 13 percent from the first six months of 2014 to reach $3.3 billion.
South Africa’s overseas acquisitions accounted for 65 percent of Sub-Saharan African outbound M&A activity, while acquisitions by Mauritian and Nigerian companies accounted for 13 percent and 11 percent, respectively. ”
“Domestic and inter- Sub-Saharan African M&A fell 11 percent year-on-year to $3.8 billion, the lowest first half total since 2007. Inbound M&A also saw a decline, down 7 percent to $4.0 billion. Energy & power was the most active sector, accounting for 18 percent of Sub-Saharan African involvement M&A,” she added.
The largest deal with Sub-Saharan African involvement during the first half of 2015 was the $1.2 billion offer from Brait Mauritius for a 90 percent interest in British retailer New Look. Rand Merchant Bank topped the 1H 2015 announced any Sub-Saharan African involvement M&A league table with $4.4 billion.
In respect to investment banking, fees from debt capital markets underwriting more than doubled year-on-year to reach $30.0 million, the best first half in the region since 2011. Syndicated lending fees also saw growth, up 63% to $35.9 million. Equity capital markets underwriting fees declined 13% to $56.9 million, accounting for 37% of the overall Sub-Saharan African investment banking fee pool, while fees from completed M&A transactions totalled $32.0 million, marking a 19% decline from the first half of 2014.
In respect to debt capital markets in Sub Saharan Africa, the first half bond issuance in the region decreased 3% from last year to US$7.3 billion during the first six months of 2015. South Africa was the most active nation accounting for almost half (49%) of activity, followed by the Ivory Coast with 34%. Deutsche Bank took the top spot in the Sub-Saharan African bond ranking during the first half of 2015 with a 17% share of the market.
