Equity Capital Markets
After a slow start to the year, the equity capital markets have re-found some momentum, with issuance in the month of June alone totaling $10.2 billion from 88 deals. Volume for the first half of 2005 has reached $34.6 billion from 570 trades, down from the $43.7 billion raised in the first half of 2004.
The biggest transaction for the year to date has been China Shenhua Energy's $2.9 billion IPO, priced earlier this month via Merrill Lynch, Deutsche Bank and China International Capital Corp.
Merrill Lynch leads the field in the league table rankings for the first half of 2005 with $3.6 billion from 19 deals, jumping from fourth place in the same period last year with $3.3 billion. Merrill Lynch's involvement in two of the three largest deals of the year has contributed to the US investment bank's rising league table status. The bank was the sole bookrunner for Sinopec's $1.4 billion follow-on in March.
Another big mover in the league table stakes is JPMorgan, ending the first half of the year in second place with $3.4 billion from 21 offerings, compared to a fifth position ranking in the first half of 2004. The US house ran the books for Kookmin Bank's $1.3 billion bought deal in June and was also involved in the $1.3 billion follow-on offering for China Cosco Holdings this month, together with HSBC and UBS.
UBS has retained its third place in the league tables with $3 billion from 14 deals, while Citigroup has shot to fourth position raising over $2.5 billion from 22 transactions after standing in eighth place last year. Citi raised its profile in the equity markets via involvement in such deals as Infosys Technologies' $1.1 billion follow-on with Deutsche Bank, Goldman Sachs and UBS, as well as being sole bookrunner for Esprit Holdings' $550m follow-on offering in March.
Despite sharing the books with HSBC on Bank of Communications' $1.9 billion IPO this month, the second largest deal of the year, Goldman Sachs has seen its league table standing plummet to seventh place from the top position in the first half of 2004. The US bank raised $2.1 billion from 14 deals, only one third of the credit achieved for the same period last year.
Morgan Stanley is another bank, which has posted a dramatic decline in its league table status, ending the first half in sixth position with $2.2 billion from 19 deals. The investment bank was ranked second the same period last year with $5.1 billion from 20 transactions. The second half of the year may see China Construction Bank hit the market with a $3 billion IPO bookrun by Morgan Stanley and China International Capital Corp.
League table climber Citigroup will also try and improve its position with a $1 billion IPO for Minsheng Bank, to be bookrun together with Deutsche Bank and Goldman Sachs.
Debt Capital Markets
Debt capital markets issuance has had a volatile year, with an active first couple of months, followed by a three-month drought. As a result, issuance is slightly down on 2004, with a total of $16.5 billion raised from 42 trades during the first six months, compared to $17.3 billion during the first half of last year.
Citigroup heads the league table rankings with $2.8 billion from 13 trades, while JPMorgan and Deutsche Bank round up the top three. The largest deal of the year to date has been the Republic of the Philippines' $1.5 billion issue, priced in January and bookrun by Citigroup, Deutsche Bank and UBS. This was followed an Eu1 billion issue from Hutchison Whampoa in June, which was led by ABN AMRO, Deutsche Bank and HSBC.
Citigroup remains at the top of the league table having taken first place in the first half of 2004 with $3.3 billion from 16 issues. The US bank was also involved in Export-Import Bank of Korea's $1 billion facility in March together with Barclays Capital and Credit Suisse First Boston, as well as the Republic of Indonesia's $1 billion trade priced in April and bookrun with Deutsche Bank and UBS.
JPMorgan has improved its league table standing, jumping to second place with $2,5 billion from nine trades, compared to the $2.1 billion raised last year and a fourth position ranking. The American house ran the books with Deutsche Bank and HSBC for the Republic of the Philippines' $750 million fundraising in May and was also the sole bookrunner for Noble Group's $700 million issue in March.
UBS has crept up to fourth place from fifth this half last year, printing $1.9 billion from nine trades, compared to $1.7 billion a year ago. Involvement in the Republic of Philippines' $1.5 billion facility in January and the $1 billion issue for the Republic of Indonesia contributed to the bank's improvement in the league tables.
Despite its participation in Kexim's $1 billion issue, Barclays Capital has dropped to fifth position from third, raising $851 million less than in the first half of 2004. Deutsche Bank and HSBC also dropped down one notch this year to third and sixth places respectively.
There is promise for the second half with the Chinese banks set to access the market. Export-Import Bank of China's $1 billion fundraising has already been mandated to BNP Paribas, Citigroup, HSBC and Merrill Lynch. With Citigroup involved in both deals, banks have their work cut out to close the gap and overtake the US bank in the league tables.
To view the latest Dealogoc league tables click here.
