HSBC dominated the region’s debt capital markets across the awards period, completing 52 DCM transactions worth a total of $10.3 billion, according to data from Dealogic. In equity capital markets, the London-headquartered lender came second, completing seven deals worth $2 billion. It also ranked in initial stock offerings, completing six IPOs worth $1.38 billion in total.
As ever in the Middle East, HSBC delivered in terms of deal quantity and deal quality. The diversification of its business and its output was as varied and impressive as ever, with the bank securing back-to-back bond mandates with multiple sovereigns, completing multiple bespoke sukuk structures, and retaining its number-one status across sustainable finance.
“Our ability to anticipate and act on key themes, from IPOs to sustainable financing, demonstrates how we lead and shape the market,” says Julian Wentzel, head of global banking for the Middle East, North Africa and Turkey at HSBC.
In July 2023, HSBC was joint global coordinator on Abu Dhabi Islamic Bank’s $750 million additional tier-1 sukuk; in October, it was joint global coordinator and sukuk structuring bank on an inaugural $3.5 billion international sukuk, issued by Saudi Arabia’s Public Investment Fund. Listed in London, the shariah-compliant sukuk drew more than $25 billion in orders.
Other standout transactions include a Rmb3.5 billion ($483 million) inaugural sustainability panda bond issued in February 2023 by Egypt. Two notable April deals were: a $1.25 billion bond for Jordan’s sovereign; and a $2 billion capital raise for the Kingdom of Bahrain, split evenly between a $1 billion 12-year bond and a $1 billion seven-year sukuk. So dominant in the space for so long, HSBC was joint lead manager on all three.
In ECM, HSBC was joint global coordinator and sole environmental, social and governance structurer on Adnoc Gas’s $2.5 billion IPO, completed in March 2023 at a tricky time for global equity markets. It was the largest IPO ever completed on Abu Dhabi’s ADX, and the third-largest IPO worldwide last year. Delivered to a highly aggressive timetable, it closed more than 50 times subscribed.
As ever in the Middle East, HSBC delivered in terms of deal quantity and deal quality
Another standout deal completed was MBC’s $222 million share offering, completed in December. It marked the first ever IPO by a Saudi Arabia-based media and entertainment company, following the earlier relocation of MBC’s headquarters from the UAE. HSBC was joint global coordinator on a deal executed at a time of high geopolitical uncertainty.
The UK lender also took the lead on several big-ticket M&A deals. It was sole financial adviser to Dur Hospitality, which runs 30 hotels dotted around Saudi Arabia, on its acquisition by Taiba Investments, one of the largest real-estate developers in the Kingdom. And it was sole financial adviser on the German insurer’s $261 million sale of a 51% stake in Allianz Saudi Fransi to Abu Dhabi insurer Adnic.
“Our position at the forefront of significant M&A transactions this year again highlights HSBC’s expertise in navigating complex deals that drive industry transformation,” says Wentzel.
