Mena equity fund raising more than doubles in first half

Mena equity fund raising more than doubles in first half

Adnoc Distribution's issue of new shares and convertible bonds were the main driver behind a doubling of equity capital market issuance in the Middle East and North Africa in the first half of 2021, according to Refinitiv data.

The amount raised on the region’s capital markets increased 138 per cent to $2.1 billion, which was a three-year high, the financial data company's Mena Investment Banking Review showed. Issuance related to Abu Dhabi National Oil Company's distribution arm made up $1.64bn of this.

The amount of debt raised by Mena entities on capital markets in the first half fell 6 per cent on last year to $70.6bn, but was still the second-highest on record, the report showed.

“Sixty four per cent of the total came from investment grade corporate debt, with a total of $45.6bn, the highest total year-to-date since our records began,” the report said. “The UAE was the top nation for [debt market] proceeds, with $20.5bn” issued, it added.

Equity markets in the region have posted strong gains this year, with Abu Dhabi and Saudi Arabia's indexes outperforming global benchmarks. The Abu Dhabi Securities Exchange's index has climbed 40 per cent, taking its market capitalisation above Dh1.26 trillion ($343bn). The Tadawul index has risen 24.2 per cent, while the MSCI World Index that tracks global markets is up 14.2 per cent.