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Refinitiv Releases Sub-Saharan Africa Investment Banking Review for Q1 2019

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global banking
  • Refinitiv releases Sub-Saharan Africa Investment Banking Review for Q1 2019

Refinitiv, one of the world’s largest providers of financial markets data and infrastructure, today announced that Sub-Saharan African investment banking fees reached an estimated US$93.5 million during the first quarter of 2019, 24% less than the value recorded during the same period in 2018 and the lowest first quarter total in 5 years.

Citi earned the most investment banking fees in Sub-Saharan Africa during the first quarter of 2019, a total of US$16.5 million or a 17.6% share of the total fee pool. Citi also topped the Any Sub-Saharan African Involvement Announced M&A Financial Advisor League Table with a 71% share of the market.

Deals involving a Sub-Saharan African target increased 71% in value to US$6.0 billion, driven by Naspers’ US$5.1 billion spin-off of its pay-TV unit MultiChoice.

South Africa’s overseas acquisitions accounted for 57% of Sub-Saharan African outbound M&A activity, while acquisitions by companies headquartered in Mauritius accounted for 43%.

Standard Bank Group topped the Sub-Saharan African Equity Capital Markets league table during the first quarter of 2019 with a 49% share of the market.

JP Morgan took the top spot in the Sub-Saharan African bond ranking during the first quarter of 2019 with US$944.4 million of related proceeds, or a 16% market share.

Summary of the findings:

INVESTMENT BANKING FEES 

Sub-Saharan African investment banking fees reached an estimated US$93.5 million during the first quarter of 2019, 24% less than the value recorded during the same period in 2018 and the lowest first quarter total in 5 years.  Fees from completed M&A transactions totalled US$36.9 million, a 31% increase year-on-year.  Equity capital markets underwriting reached US$11.6 million, down 70% from the first quarter of 2018 to a 2-year low, while fees from debt capital markets underwriting fell 53% to a 3-year low of US$14.0 million. Syndicated lending fees increased 20% year-on-year to US$30.1 million.  Completed M&A fees accounted for 39% of the overall Sub-Saharan African investment banking fee pool during the first quarter of 2019. Equity and Debt capital markets generated 12% and 15%, respectively, while syndicated lending fees accounted for 33%. Citi earned the most investment banking fees in Sub-Saharan Africa during the first quarter of 2019, a total of US$16.5 million or a 17.6% share of the total fee pool.

MERGERS & ACQUISITIONS

The value of announced M&A transactions with any Sub-Saharan African involvement reached US$8.8 billion during the first quarter of 2019, up 41% from the same period last year.  Deals involving a Sub-Saharan African target increased 71% in value to US$6.0 billion, driven by Naspers’ US$5.1 billion spin off of its pay-TV unit MultiChoice.  Inbound M&A, involving an acquirer from outside of the region, was down 81% year-on-year to a 16-year low of US$540.1 million, while outbound M&A increased 24% to an 8-year high of US$2.2 billion. South Africa’s overseas acquisitions accounted for 57% of Sub-Saharan African outbound M&A activity, while acquisitions by companies headquartered in Mauritius accounted for 43%.  Citi topped the Any Sub-Saharan African Involvement Announced M&A Financial Advisor League Table during the first quarter of 2019 with a 71% share of the market.

EQUITY CAPITAL MARKETS

Sub-Saharan African equity and equity-related issuance totalled US$1.1 billion during the first quarter of 2019, 61% less than the value recorded during the first three months of 2018.  Eight follow-on offerings totalled US$1.0 billion and accounted for 98% of total ECM activity in the region by value, while a single IPO accounted for the remaining 2%.  Icon Properties was the only initial public offering in the region during the first quarter of 2019, raising US$20.4 million on the Malawi Stock Exchange in January. Standard Bank Group topped the Sub-Saharan African ECM league table during the first quarter of 2019 with a 49% share of the market.

DEBT CAPITAL MARKETS

Sub-Saharan African debt issuance totalled US$5.9 billion during the first quarter of 2019, down 52% from the value recorded during the same period in 2018 and the lowest first quarter total since 2016.  Ghana and The Ivory Coast were the most active issuer nations with US$3.0 billion and US$1.2 billion in bond proceeds, respectively.  Ghana raised US$3.0 billion with its Eurobond issue in March, the largest bond offering in the region so far during 2019. JP Morgan took the top spot in the Sub-Saharan African bond ranking during the first quarter of 2019 with US$944.4 million of related proceeds, or a 16% market share.

CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and Investing.com, with over a decade experience in the global financial markets.

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Oil Prices News: Oil Gains Following Drops in US Crude Inventories

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Oil Prices Gain Following Drops in US Crude Inventories and OPEC High Compliance Level

Global oil prices extended their 2 percent gains on Thursday after data showed U.S crude oil inventories declined last week.

The price of Brent crude oil, against which Nigerian oil is measured, gained 0.2 percent or 7 cents to $43.39 a barrel as at 12:10 pm Nigerian time. While the U.S. West Texas Intermediate (WTI) crude appreciated by 8 cent or 0.2 percent to $41.12 barrels.

Oil prices extended their three days gain after the American Petroleum Institute said the U.S crude inventories declined by 5.4 million barrels in the week ended October 9.

The report released after the market closed on Wednesday revealed that distillate stockpiles, which include diesel and heating oil, declined by 3.9 million barrels. Those stated drawdowns almost double analysts’ projections for the week.

Much of the fall is due to the effects of Hurricane Delta shuttering U.S. production in the Gulf of Mexico, and as such, will be a transitory effect,” said Jeffrey Halley, senior market analyst, Asia Pacific at OANDA.

“Therefore, I am not getting too excited that a turn of direction is upon markets, although both contracts are approaching important technical resistance regions.”

Also, the report that the Organization of the Petroleum Exporting Countries (OPEC) and its allies, referred to as OPEC+ attained 102 percent compliance level with their oil production cuts agreements bolstered global oil outlook. Suggesting that demands for the commodity are likely not growing and could drag down prices in few weeks, especially when one factor in the reopening of Libya’s Sharara oil field, workers returning to operation in Norway and the Gulf of Mexico.

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Oil Prices Gain on Tuesday Despite Expected Surge in Global Oil Supplies

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Oil

Oil Prices Rise Despite Expected Surge in Global Oil Supplies

Oil prices gained on Tuesday despite Libya opening Sharara oil field for production, labour in Norway reaching an agreement with oil firms to return back to work and oil workers in the U.S returning to the Gulf of Mexico region after the Hurrican Delta.

Brent crude oil, against which Nigerian oil price is measured, gained 1.77 percent to $42.46 per barrel as at 11:15 am Nigerian time on Tuesday.

While the US West Texas Intermediate (WTI) crude oil gained 2 percent to close at $40.22 per barrel.

The improvement in prices was after oil prices plunged as much as 3 percent on Monday following a resolution reached by Libyan rebels and government to commence oil production at the nation’s largest oil field, Sharara Oil Field.

This coupled with labour agreement with oil firms in Norway was expected to boost global oil supplies and eventually weighed on prices and disrupt OPEC+ production cuts strategy.

However, prices surged after Nancy Pelosi said she would commence talks on $1.8 trillion stimulus package following President Trump’s return to the White House after he was rushed to hospital following a positive COVID-19 test.

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Joe Biden Win Could Boost Oil Prices, Says Goldman Sachs

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Oil price

Oil Prices to Surge Once Joe Biden Wins -Goldman Sachs

Goldman Sachs, one of the world’s largest investment banks, has said Joe Biden win could boost global oil prices despite weak global economic outlook and COVID-19 negative impacts on the world’s growth.

The investment bank, however, remains bullish on both oil and gas prices regardless of the election outcome in November.

The bank sees oil and gas demand rising enough in 2021 to supersede election results but explained that Biden win could bolster prices by making production more expensive and more regulated for producers in the U.S.

In a note written by the bank’s commodities team on Sunday, it said “We do not expect the upcoming U.S. elections to derail our bullish forecasts for oil and gas prices, with a Blue Wave likely to be in fact a positive catalyst.”

“Headwinds to U.S. oil and gas production would rise further under a Joe Biden administration, even if the candidate has struck a centrist tone.”

Goldman Sachs explained that if incumbent, Trump, is re-elected with pro-oil and gas policies in place that “its impact would likely remain modest at best,” Goldman’s analysts wrote, “given the more powerful shift in investor focus to incorporate ESG metrics and the associated corporate capex re-allocation away from fossil fuels.”

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