Best Investment Banks 2011: Country Winners

Country Winners

North America

Canada

Scotia Capital

Scotia Capital is the global corporate and investment banking and capital markets arm of Scotiabank, the most international bank in Canada. Scotia Capital handled the three largest debt financings in Canada in 2010, all for more than $2.5 billion. The bank is also the leading derivatives provider in Canada and makes effective use of swaps and derivatives to structure new bond issues. Scotia Waterous, the oil and gas M&A; business of Scotia Capital, was the exclusive technical and financial adviser to Sinopec International Petroleum & Production on its definitive agreement last October to purchase a 40% stake in Repsol Brazil, a unit of Spain-based Repsol, for $7.1 billion.

US

Morgan Stanley

Morgan Stanley was the leading manager of equity and equity-related issues for US-based companies last year, with proceeds of $35.6 billion from 156 deals. The bank was also the number-one underwriter of US initial public offerings. It was a manager of the $18.1 billion IPO of General Motors, as well as of GM’s $5 billion convertible bond. Morgan Stanley was number-two adviser for M&A; deals announced in the US in 2010.

 

Europe

France

BNP Paribas

BNP Paribas was the number-one financial adviser on mergers and acquisitions by companies based in France last year, for both announced and completed deals. It advised on 64 announced deals valued at $79.1 billion, giving it a 47.7% market share, according to Thomson Reuters. BNP Paribas was also the number-one bookrunner globally for bonds denominated in euros.

Germany

Deutsche Bank

Deutsche Bank, Germany’s biggest bank, got a boost in the fourth quarter of 2010 from higher fixed-income and equities trading revenue. It was the number-one bookrunner for international emerging markets bonds last year, with $23.8 billion in proceeds from 92 deals. Deutsche Bank was number two in combined debt, equity and equity-related issues and in bonds denominated in euros.

Italy

Mediobanca

Mediobanca, Italy’s largest investment bank, was financial adviser on 51 mergers and acquisitions involving Italian companies that were announced in 2010. These deals were valued at $12.8 billion. Mediobanca also was the number-one financial adviser on M&A; transactions completed in Italy last year. It advised on 38 such deals valued at $11.1 billion, giving it a market share of 32.5%.

Netherlands

ING

ING was bookrunner on 22 equity deals in Europe last year valued at $3.1 billion. It also underwrote seven rights offerings totaling $1.8 billion. Maurits Duynstee, head of corporate finance Western Europe for ING, says the bank’s position in the Dutch market, combined with its international reach and broad range of solutions, “allows us to be the strategic sparring partner for our client base.” Looking ahead, he says, “We see a cautious market environment, but at the same time, positive signs in a direction of further economic recovery.”

Portugal

CaixaBI

Caixa – Banco de Investimento, or CaixaBI, is the investment banking arm of Caixa Geral de Depositos, the largest banking group in Portugal. CaixaBI was the number-one bookrunner in 2010 for bond issues of companies based in Portugal. It also was a top-three adviser in Portugal’s equity capital markets, and number two in M&A.; CaixaBI was financial adviser to Portugal Telecom on its sale of its 50% stake in Brasilcel, which owns about 60% of Vivo, Brazil’s largest mobile-phone company.

Russia

VTB Capital

VTB Capital is the leading investment bank in the Russian equity capital markets. Last year the bank completed 10 equity deals with proceeds totaling $5.5 billion. It also completed 37 debt deals valued at $12 billion. VTB Capital was the leading Eurobond bookrunner in Russia and also led in local bonds last year. The bank handled the $1.5 billion debut Eurobond for Russian Railways. It also placed convertible bonds and global depositary receipts for TMK, a manufacturer of steel pipes. In addition, VTB Capital was financial adviser on M&A; deals totaling $27 billion in 2010.

Spain

Morgan Stanley

Morgan Stanley was the number-one financial adviser in 2010 on M&A; transactions involving companies based in Spain. It advised on 26 such deals valued at $43.7 billion, giving it a 35.5% market share, according to Thomson Reuters. Morgan Stanley advised Portugal Telecom on its sale of a 50% interest in Brasilcel to Telefónica. It was also a global coordinator of the $1.7 billion IPO of Amadeus Holding IT, which provides online travel reservations.

Switzerland

Credit Suisse

Credit Suisse earlier this year issued $8 billion of contingent conversion capital securities, known as cocos, or bonds that convert into equity if the bank’s balance sheet becomes impaired. The cocos comply with Basel III capital requirements. Last year Credit Suisse advised the Philippines on a $1 billion global bond that was the first in the region to be denominated in local currency. The bank also advised on six IPOs totaling $3.2 billion on domestic exchanges in China.

Turkey

Garanti Securities

Garanti Securities advised the Privatization Administration of Turkey on the sale of shares in Ankara Natural Gas Distribution. In January, Garanti completed the initial public offering of Bizim Toptan, Turkey’s largest nationwide wholesaler.

United Kingdom

J.P. Morgan

J.P. Morgan was the number-one financial adviser on M&A; deals involving UK-based companies in 2010. The bank advised on 79 such deals valued at $114.5 billion, giving it a 34% market share. J.P. Morgan advised International Power on its $25 billion takeover by GDF Suez Energy International, which created the world’s largest utility.

 

Asia

Australia

UBS Investment Bank

UBS was the leading investment bank for equity and equity-related deals in Australia in 2010, according to Thomson Reuters. UBS advised on 29 such deals with proceeds totaling $8.4 billion, giving it a market share of 26.1%. The bank worked on four of the five largest M&A; deals in Australia as well, giving it a leading 42% share of the $124 billion of transactions involving Australian companies announced last year. It is advising ASX on its $8.1 billion sale to Singapore Exchange.

China/Hong Kong

China International Capital Corporation (CICC)

CICC, the leading investment bank in China, closed 30 equity financings last year totaling $95.8 billion. They included the $22.1 billion A-share and Hong Kong IPO of Agricultural Bank of China, the largest-ever IPO in Asia. CICC also led in domestic Chinese debt deals and M&A; transactions.

Yang Guang, a spokesman for CICC, says the award from Global Finance reflects the value the bank’s clients place on its services, and that the year ahead holds many challenges and opportunities. “The fast-growing Chinese economy together with the accelerating pace of the globalization of the renminbi are poised to attract more global attention, both to the Hong Kong and domestic markets,” he says. “All these offer CICC a great opportunity to grow to be a first-tier China-based international investment bank.”

India

Morgan Stanley

Morgan Stanley was the number-one financial adviser on M&A; deals announced in India in 2010. The bank advised on 13 deals valued at a total of $25.1 billion, giving it a 24.7% share of India’s record $96 billion M&A; market last year. In February 2011, Morgan Stanley advised BP on its $7.2 billion cash deal to purchase a 30% stake in 23 oil and gas blocks owned by Reliance Industries.

Indonesia

Mandiri Sekuritas

Mandiri Sekuritas is a subsidiary of Bank Mandiri, the largest bank in Indonesia. Mandiri Sekuritas was the number-one debt underwriter in Indonesia in 2010 and fourth in equity underwriting. It was lead manager for the privatization of Krakatau Steel and also underwrote the IPO of Indofood CBP, the largest IPO in Indonesia in 2010.

Japan

Daiwa Capital Markets

Daiwa Capital Markets has expanded rapidly since October 2009, when parent Daiwa Securities, a leading broker in Japan, bought back Sumitomo Mitsui Financial Group’s 40% stake in Daiwa Securities SMBC. Last November, Daiwa acquired the global convertible bonds and equity derivatives businesses of KBC. Mikita Komatsu, Tokyo-based senior managing director and deputy head of corporate planning, says the core strength of this investment bank is its retail and institutional client base in Japan and across Asia. While Japan remains its core market, “we will leverage our existing strength in Japan to expand in Asia, and we believe that our growing expertise in Asia will allow us to compete as a global investment bank focused on Asia,” Komatsu says.

Kazakhstan

Halyk Finance

Halyk Finance, part of Halyk Bank, was lead manager last November for a $1.25 billion Eurobond issue for KazMunayGas (KMG). In December 2010, Halyk Finance was joint bookrunner and underwriter of a $678 million zero-coupon bond for KMG, which was the first-ever zero-coupon bond by a corporation in Kazakhstan’s securities market.

Singapore

Standard Chartered Bank

Standard Chartered Bank was joint lead manager of a $785 million issue of 40-year notes for state-owned investor Temasek, extending the yield curve in Singapore. The longest tenor of a Singapore government bond is 20 years. Standard Chartered worked on all four Temasek bond issues last year. It also arranged a $2 billion, euro-denominated medium-term note program for CapitalMalls Asia.

South Korea

Bank of America Merrill Lynch

Bank of America Merrill Lynch was the number-one financial adviser on M&A; deals announced last year that involved companies based in South Korea. The bank advised Korea Asset Management (Kamco) on the sale of its 35.5% stake in Daewoo International to steelmaker Posco. BoAML also advised Korea National Oil on its $3.1 billion cash bid for UK-based Dana Petroleum.

Taiwan

Fubon Financial Holding

Fubon Financial Holding nearly doubled its syndicated loan business last year, and its bond underwriting rose by 54% from a year earlier. The bank also led in a number of deals in the equity capital market. It managed a $363 million follow-on equity offering for Taiwan Cement. Fubon was the number-one financial adviser on M&A; deals in Taiwan last year.

 

Latin America

Argentina

Citi

Citi was joint lead manager of an $18.3 billion exchange offer for the Republic of Argentina in June 2010 that completed the country’s restructuring process, begun in 2005. Citi also was joint bookrunner of a $400 million international bond offering for the Province of Cordoba. The issue was later reopened for an additional $196 million. Citi also led a $150 million international bond offering for IRSA, which was the first single-B-rated corporate bond to price in nearly three years.

Brazil

BTG Pactual

BTG Pactual, the largest independent investment bank in Brazil, led in both M&A; financial advisory and equity issues in 2010. It advised on 56 M&A; deals totaling $34.8 billion last year, including Royal Dutch Shell’s $12 billion joint venture with ethanol producer Cosan. BTG Pactual also was the leader in equity issuance in terms of number of issues. It was involved in the two largest equity issues, by Petrobras and Banco do Brasil, and also led in issues of long-term debentures.

Chile

LarrainVial

LarrainVial, based in Santiago, was established in 1934 as a traditional securities brokerage. Since then, it has expanded into a wide range of financial services and is a leading investment bank in Chile. In 2010, LarrainVial developed the only IPO of the year in Chile, a $227 million offering by Pesquera Camanchaca, a fishing company. It also became the first Chilean financial services group registered as a broker-dealer in the US. In January 2011, LarrainVial conducted the largest operation in the Chilean capital market, the $1 billion sale of 40% of electricity generator E-CL that was owned by Codelco.

Colombia

Banca de Inversión Bancolombia

Banca de Inversión Bancolombia, or BI Bancolombia, is the leading underwriter of corporate debt in Colombia. A subsidiary of Bancolombia, it has in-depth knowledge of Colombia and the region. BI Bancolombia led the syndication of a $350 million credit for Jaguar Energy Guatemala. It also advised Cabcorp, the biggest Pepsi bottler in Central America and the Caribbean, on structuring and syndicating a $125 million credit.

Mexico

Citi

Citi was joint bookrunner on América Móvil’s $4 billion bond offering in March 2010 to fund the acquisition of Telmex Internacional. América Móvil, Latin America’s largest mobile-phone operator, increased the size of the issue by adding a five-year portion to the planned 10-year and 30-year offering. Citi also advised cement producer Cemex on a capped call option concurrent with a $715 million offering of convertible bonds. The option enabled Cemex to increase the conversion premium.

 

Middle East

Bahrain

Gulf International Bank (GIB)

GIB has returned to profitability after being hard hit by its exposure to toxic assets during the financial crisis. GIB earned $100 million in 2010, following a loss of $153 million in 2009. Majority-owned by the Public Investment Fund of Saudi Arabia, GIB focuses on companies based in the six member countries of the Gulf Cooperation Council. GIB was the lead manager and co-underwriter of the IPO last September of Abdulla A.M. Al-Khodari Sons, a general contracting firm based in Saudi Arabia. GIB also was regional lead manager for the $163 million IPO of Aluminum Bahrain.

Egypt

Arab African International Bank

Arab African International Bank was established in 1964 as a joint venture of the Central Bank of Egypt and the Kuwait Investment Authority. It has been a leader in introducing new products and technology to the Egyptian banking industry. The bank has long had a focus on investment banking and corporate banking, with particular strength in the fixed-income area. In recent years, however, it has expanded rapidly into retail banking and now has 46 branches in Egypt. In April 2010, AAIB was an underwriter of GB Auto’s 1 billion Egyptian pound ($184 million) unsecured bond issue.

Israel

HSBC

An HSBC-led investor group signed an agreement early last year for new equity financing of $350 million for Better Place, which is developing battery-charging infrastructure in Israel. HSBC advises on mergers and acquisitions, private placements and capital market activities. It also arranges debt and equity offerings, including leveraged finance and structured debt.

Jordan

Arab Bank

With 500 offices in 30 countries, Amman-based Arab Bank has an extensive distribution system. Its Al Arabi Investment (AB Invest) was founded in 1996 as the first investment bank in Jordan. AB Invest serves the Levant area. Arab Bank is also the majority shareholder in AB Capital, founded in 2006, which operates from the Dubai International Financial Center and focuses on the Arab Gulf.

Kuwait

Markaz

Markaz, also known as Kuwait Financial Center, is an investment bank and asset manager. Markaz is the leading fund manager in Kuwait, with a 23% market share. The firm has a good track record in both structuring debt issues and managing fixed-income and equity funds. Markaz is one of the few investment companies in the region that managed to weather the financial crisis without asking for government support.

Lebanon

BankMed

BankMed, a leading bank in Lebanon, offers a wide range of investment banking products through SaudiMed Investment and MedSecurities Investment, as well as BankMed’s treasury division. Riyadh-based SaudiMed, with a staff of 13, is concentrating on structured finance as an alternative to bank lending. It is also working on setting up a Saudi real estate fund. MedSecurities offers brokerage and investment product development services.

Oman

BankMuscat

BankMuscat, the largest bank in Oman, was the sole manager of the $475 million initial public offering of a 40% stake in Omani Qatari Telecommunications (Nawras). This was the first IPO in Oman to use the book-building process. Nawras listed on the Muscat Stock Market last November. BankMuscat was financial adviser to Octal Petrochemicals in raising a total of $371 million of equity, subordinated and senior debt. The bank also raised $275 million of equity and co-investment commitments for Oman Fixed Income Fund (OMFI), the first fixed-income fund in the sultanate.

Qatar

QInvest

Doha-based QInvest is the largest investment bank in Qatar, as measured by both employees and paid-in capital, following a rights issue last October. The firm has expanded rapidly in the past two years and has completed many significant deals. It is sole financial adviser to Bawabat Al Shamal on the development of a major mall project in Qatar to be built in partnership with UAE-based Al Futtaim. QInvest is also overseeing the creation of a joint venture that will develop and manage real estate projects throughout the region.

Saudi Arabia

Sambacapital

Riyadh-based Sambacapital is one of the largest investment banks in Saudi Arabia. Its dedicated equity placement platform covers the country and is complemented by a Dubai office to extend its regional distribution capabilities. Sambacapital advises leading private and public sector companies in Saudi Arabia on capital raising and M&As.; Recently, it advised power and water utility Marafiq on its first commercial debt financing. It also advised AWCA Power on its first overseas investment and first M&A; transaction, the acquisition of AES Barka, based in Oman.

UAE

Emirates NBD Capital

Emirates NBD Capital is the investment banking arm of the largest bank by assets in the Arab Gulf. The investment bank is shifting its focus from proprietary investments and trading to fee-based income from advisory services. Emirates NBD Capital is helping companies and real estate developers to restructure large amounts of debt that are coming due in the next few years.

 

Africa

Nigeria

Vetiva Capital Management

Vetiva Capital Management, based in Lagos, offers financial advisory services and is a leader in debt and equity financings in Nigeria. Vetiva is a dealmaker in balance-sheet restructuring transactions in the financial services industry. Last October, Vetiva advised on the merger of Dangote Cement and Benue Cement, which created the largest listed company on the Nigerian Stock Exchange.

South Africa

Standard Bank

Standard Bank, the largest banking group in South Africa, is active in many sectors critical to the country’s economy, including mining, energy and power. The bank was a mandated lead arranger of a $356 million financing to fund part of the construction of a coal-fired power plant for Eskom. The plant is located at the mouth of a mine and will use dry cooling to conserve water. This is the first rand-denominated export credit agency transaction in the South African market.