Refinitiv has said that the total value of mergers and acquisition carried out in Sub Sahara Africa in the first three months of 2022 amounted to $7 billion. Definitiv in its first quarter 2022 investment banking analysis for the Sub-Saharan African said that estimated $97.3 million worth of investment banking fees were generated in Sub-Saharan Africa during the first quarter of 2022, down 9% from the same period in 2021 and the lowest first quarter total since 2014. The value of announced M&A transactions with any Sub-Saharan African involvement reached $7.0 billion during the first three months of 2022, 13% less than the value recorded during the same period in 2021 and a four-year low, despite an 11% increase in the number of deals.
According to the report Sub-Saharan African equity and equity-related issuance totalled $496.9 million during the first quarter of 2022, compared to just $18.4 million during the same period last year. Sub-Saharan African debt issuance totalled US$9.4 billion during the first quarter of 2022, down 30% from the value recorded during the same period in 2021, although historically high with only 2018 and 2021 registering higher first quarter totals. Equity capital markets underwriting fees declined 1% to US$8.8 million, the lowest first quarter total in twelve years. Debt capital markets fees declined 16% from last year’s record start to US$40.7 million, while syndicated lending fees declined 81% to $6.3 million. Advisory fees earned in the region from completed M&A transactions reached a three-year high of $41.4 million, an increase of 163% compared to the first three months of 2021. Seventy-nine percent of all Sub-Saharan African fees were generated in South Africa during the first quarter of 2022, and 33% were earned from deals in the High Technology sector. Goldman Sachs earned the most investment banking fees in the region during the first quarter of 2022, a total of $11.4 million or an 11.7% share of the total fee pool.
It said that deals worth $5.2 billion involved a Sub-Saharan African target, a 10% increase from the first quarter of 2021. While domestic deals declined 17% from last year, inbound deals involving a non-Sub-Saharan African acquiror increased 44% to $3.0 billion, the highest first quarter total in five years. Meanwhile, Sub-Saharan African outbound M&A totalled $776.0 million, less than half the value recorded during the same period last year and with a 15% decline in the number of deals. High technology was the most targeted sector by value in Sub-Saharan Africa during the first quarter of 2022, while the financial sector saw the highest number of deals in the region. South Africa was the most targeted nation, with $2.5 billion in M&A announcements, equivalent to 48% of total activity recorded in the region. With advisory work on deals worth a combined U$1.8 billion, Goldman Sachs held the top spot in the financial advisor ranking for deals with any Sub-Saharan African involvement during Q1 2022.
All proceeds were raised by follow-on issuance with MTN Nigeria Communications and South African coal exporter Thungela Resources among those in the region raising new equity funds from follow-ons. No convertible or initial public offerings were recorded in the region. Issuers in Nigeria raised more in the equity capital markets than any other Sub-Saharan African nation during the first quarter of 2022, a total of $277.1 million, while South African issuers raised a combined US$219.9 million. Morgan Stanley took first place in the Sub-Saharan African ECM underwriting league table during the first quarter of 2022 with a 23% market share, followed Java Capital with 13%. The number of issues declined 43% from last year at this time. South African was the most active issuer nation during the first quarter of 2022, accounting for 59% of total bond proceeds, followed by Nigeria (22%) and Ivory Coast (14%). Issuers is the technology sector accounted for 56% of proceeds raised during the first three months of 2022, while government & agency issuers accounted for 27%. Citi took the top spot in the Sub-Saharan African bond bookrunner ranking during the first quarter of 2022, with US$1.7 billion of related proceeds, or an 18.1% market share.
