According to Refinitiv’s investment banking analysis, an estimated $99,3-million worth of investment banking fees were generated in sub-Saharan Africa during the first quarter of 2021, down 39% from the same period in 2020 and the lowest first quarter total since 2014.
While debt capital markets underwriting fees doubled to $47,1-million, the highest first quarter total since our records began in 1980, fees from equity capital markets underwriting, M&A advisory and syndicated lending all declined from the first quarter of 2020. Equity fees declined 42% to $21,8-million, while syndicated lending fees declined 74% to $15-million.
Advisory fees earned in the region from completed M&A transactions reached $15,5-million, down 65% from last year to the lowest first quarter total since 2005. Seventy-two percent of all sub-Saharan African fees were generated in South Africa during the first quarter of 2021, and 39% were earned from deals in the financial sector.
B Riley Financial Inc earned the most investment banking fees in the region during the first quarter of 2021, a total of $19,8-million, or a 20% share of the total fee pool.
The value of announced M&A transactions with any sub-Saharan African involvement reached $6,1-billion during the first three months of 2021, almost level with the value recorded during the same period in 2020, and a five-year low. The number of deals declined 14% over the same period to the lowest first quarter tally since 2014.
M&A involving a sub-Saharan African target increased 73% year-on-year to $4,3-billion during the first quarter of 2021. Domestic deals increased 67% from last year to $2,5-billion, while inbound deals, involving an acquiror outside of sub-Saharan Africa, increased 83% to $1,8-billion. Meanwhile, sub-Saharan African outbound M&A totalled $721,4-million during the first quarter of 2021, down 66% year-on-year to the lowest first quarter level in six years.
The Zambian government, through its mining investment arm ZCCM Investment Holdings, acquired the Mopani Copper Mines for $1,5-billion in January. The acquisition is the largest deal in the region to be announced so far during 2021.
With advisory work on deals worth a combined U$668.5 million, BofA Securities held the top spot in the financial advisor ranking for deals with any Sub-Saharan African involvement during Q1 2021.
Sub-Saharan African equity and equity-related issuance reached just $18,4-million during the first quarter of 2021, the lowest first quarter total since 1999. Only Nigeria payments processing firm eTranzact raised new equity funds from its follow-on offering. There were no initial public offerings. PAC Capital, Meristem Securities and Standard Bank Group share first place in the Sub-Saharan African ECM underwriting league table during the first quarter of 2021.
Sub-Saharan African debt issuance totalled $12,1-billion during the first quarter of 2021, up 36% from the value recorded during the same period in 2020 and the highest first quarter total since 2018. The number of issues declined 6% over the same period. With Ghana’s government’s Eurobond raising $2,9-billion and The African Development Bank’s $2,5-billion five-year Benchmark bond, March 2021 saw more proceeds raised from bond issuance in sub-Saharan Africa than any other month since May 2018, a total of $7,4-billion. Government & Agency issuance accounted for 64% of proceeds raised during the first quarter of 2021. Standard Chartered took the top spot in the sub-Saharan African bond book runner ranking during the first quarter of 2021, with $1,4-billion of related proceeds, or an 11,5% market share.