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Sub Saharan African
equity issuance doubles to US$ 6.7 billion
in 2014
Investment banking Fees for Sub Saharan
African Investment Banking services totalled
US$339 million in 2014
The value of announced M&A transactions
involving Sub Saharan African targets
reached US$28 billion in 2014
Sub Saharan African debt issuance reached
US$18.7 billion in 2014
Johannesburg, South Africa : 19 January 2015
- Thomson Reuters, the world's leading
source of intelligent information for
businesses and professionals, today released
the annaul investment banking analysis for
the Sub Saharan Africa region.
According to estimates from Thomson Reuters
/ Freeman Consulting, fees for Investment
Banking services in Sub Saharan Africa
totalled US$338.9 million in 2014, down 9%
compared to 2013 (US$371.2 mil).
Keith Nichols, Managing Director, Africa,
Thomson Reuters, said: “The value of
announced M&A transactions involving Sub
Saharan African targets reached US$28.0
billion during 2014, down 3% from last year.
Equity and equity-linked issuance in Sub
Saharan Africa totalled US$6.7 billion in
2014, almost double the value recorded
during 2013 (US$3.5 billion) and the highest
annual total since 2007.”
He added: “Sub Saharan African debt issuance
reached US$18.7 billion during 2014, 10%
less than in 2013, although still the second
highest annual total since our records began
in the 1970s.”
In respect to investment banking fees,
two-thirds of 2014 annual fees were earned
during the second half of the year. Fees
from equity capital markets underwriting
increased 22% year-on year to reach US$112.4
million, marking the highest annual total in
the region since 2010. Syndicated lending
fees also increased from 2013, growing 8% to
US$123.7 million and marking the highest
annual total since our records began in
2000.
Fees from advisory on completed M&A
transactions fell 22% to US$64.2 million,
accounting for 37% of the annual fee pool,
while debt capital markets underwriting fees
fell 53% to US$38.6 million. Citi topped the
Sub Saharan African fee league table during
2014 with a 9% cut of the fees. Standard
Bank Group and Barclays followed in second
and third positions, respectively.
As for Mergers & Acquisitions (M&A), the
most targeted nation by value was South
Africa, accounting for 52% of activity,
followed by Nigeria (21%) and Mozambique
(4%). South Africa was also the most active
buyer in the region, while the United
Kingdom was the most active foreign buyer.
Steinhoff International Holdings agreed to
buy South African clothing retailer Pepkor
for US$5.6 billion in November 2014. The
deal involved the purchase of a 52.5% stake
from Titan Premier Investments and a 39.9%
stake from Brait Mauritius Ltd. It is the
largest deal in the region since Bharti
Airtel’s US$10.7 billion purchase of Zain’s
African assets in 2010. Boosted by this
deal, Retail was the most active sector in
2014, accounting for 21% of M&A activity.
Barclays topped the 2014 announced any Sub
Saharan African involvement M&A Ranking,
with US$7.3 billion.
As for Equity Capital Markets (ECM),
proceeds raised from follow-on offerings
accounted for 69% of ECM activity, while
initial public offerings and equity-linked
issuance accounted for 19% and 12%,
respectively. 85% of deals involved a South
African issuer. The financial sector was the
most active sector for equity issuance in
the region, followed by retail. The largest
IPO so far this year was oil company Seplat
Ltd’s US$541 million dual listing on the
London and Nigerian Stock Exchanges in
April. Citi took the top spot in the Sub
Saharan African Equity Capital Markets
league table during 2014, with 15% of the
market.
The Debt Capital Markets were active as
well. The African Development Bank,
headquartered in the Ivory Coast, raised
US$4.2 billion during the course of the
year, accounting for over one-fifth of 2014
bond issuance in the region. The Kenyan
government raised US$2.0 billion in June,
the largest bond issued in the region so far
this year, followed by a further US$1.9
billion in November.
Barclays took the top spot in the Sub
Saharan African Debt ranking in 2014 with
US$2.9 billion, or a 15% share. Deutsche
Bank and Citi followed in second and third
positions.
-Ends-
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of Thomson Reuters Investment Banking
division, brings up to the minute market
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CONTACT
Tarek Fleihan
Head, Corporate Communications and Public
Relations
Middle East, Africa & Russia / CIS
+97144536527
Email: tarek.fleihan@thomsonreuters.com
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