Syndicated loans in the Mena region picked-up significantly after the start of the pandemic, with issuance volume increasing by almost 150% from $8.7 billion to $25.3 billion in the first quarter (Q1) of 2021, said Bloomberg in a new report.
HSBC managed to secure first place, after coming in at second place in Q1 2020 and 2019 in the role of bookrunner, and managing to beat First Abu Dhabi bank under the same role by a margin of nearly $40 million, according to the latest EMEA Capital Markets Tables, representing the top arrangers, bookrunners and advisors across various deals including syndicated loans, bonds, equity and M&A transactions in the first quarter 2021.
Saudi’s Public Investment Fund was the biggest deal on the Mena borrower loans table with $15 billion, with nearly 14 major banks taking part. The region also saw its first sustainability linked loan of $1.75 billion raised by Emirates NBD, being the third largest deal in the region, after the Ministry of Finance Oman deal of $2.20 billion.
Bonds and sukuks: 2021 had a steady start in the Mena bonds and sukuk environment, with volumes increasing by 100% to $41.1 billion, the highest Q1 on record. The second highest volume on record was Q1 2019, with volumes of $35.9 billion. HSBC surpassed Standard Chartered this quarter, moving up to the top underwriter in the region. The Kingdom of Saudi Arabia has been the top issuer in the region, issuing about $7 billion worth of international bonds, contributing about 40% of total Mena Bonds volume.
Global sukuks and Islamic financing: Total volumes increased by 7.1% compared to Q1 2020. Emirates NBD has secured a position amongst the top 10 banks as manager/book runner, racing up by 14 places. Riyad Bank, HSBC and Warba bank are among the local banks that secured positions among top 10 managers and bookrunners.
The ISDB Corporate bond and the NCB tier 1 sukuk are the top two deals that have led to a combined increase of $3.75 billion in volumes this quarter. In the loans space, we also saw a first issuance from ICD Brookfield undertaking a loan of AED2.3 billion ($626 million) in January 2021.
Bloomberg’s league tables are a one-stop shop for constant and timely access to the most comprehensive information available on capital markets representation.
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