The government of new President Bassirou Diomaye Faye has set up a commission to audit Senegal’s natural resource agreements, with the aim of “reexamining and rebalancing” them to match the West African nation’s interests.

The move comes just weeks after Senegal officially became an oil producer. In June, Australian operator Woodside Energy announced the first oil extraction from Sangomar offshore field, a project in which it has invested $5.2 billion and controls an 82% share; state-owned Petrosen holds the remaining shares.

Woodside is one of numerous multinationals with natural resource interests in Senegal, the others being BP, Kosmos Energy, Total, Oranto, Endeavour, Managem, and Dangote. BP, operator of the $4.8 billion Greater Tortue Ahmeyim gas project, is on course to make its first delivery this year. Senegal is on the receiving end of an expected $1.4 billion petrodollar windfall annually.

For the multinationals, which hope to recoup their massive investments, the overall motive and endgame of the review remain a mystery and cause for worry. But in theory, it could enhance transparency and strengthen trust between the government, multinationals, and the public, notes Catherine Lena Kelly, associate professor of Justice and Rule of Law at the Africa Center for Strategic Studies in Washington.

“Senegalese people want tangible benefits from natural resources and demand efficient use of profits,” she says.

The government has said categorically that it has no plans to nationalize projects. But, coupled with the destabilizing effects of recent regime changes in Africa, the Senegalese audit will strengthen foreign companies’ resolve to tighten arbitration clauses in their contracts, says Kenya-based energy and mining expert Patrick Obath.

“Expect arbitration clauses to become watertight, because investors abhor the uncertainties of regime changes,” he says. Going by the experiences of other African governments that have recently ripped up existing agreements, like Tanzania, close observers caution that Senegal could be walking a dangerous path.

Banks in Africa have recently been operating in challenging environments, owing to economic turmoil. The stress factor has been particularly elevated in big economies. Amid the harsh environment, African banks’ top leadership and management have demonstrated shrewdness and prowess. Instead of crumbling, banks remain resilient. Some are even posting record-breaking profits.

Local currency crises in Egypt and Nigeria have caused havoc. The ripple effects for banks have heightened risks to asset quality. In South Africa, sluggishness in critical sectors like mining, energy, logistics, construction, and trade saw economic growth nosedive to a mere 0.6% in 2023, down from 1.9% in 2022.

South Africa is a case in point. A March PwC analysis shows major banks posted a combined headline earnings growth of 13.8% to $5.9 billion in 2023, compared to $5.2 billion in 2022. Combined return on equity (ROE) hit 17.6% from 17.1%.

“We continue to observe the quality of leadership teams and the ability of management teams to position their businesses to effectively navigate the complexities of macroeconomic events and a local economy under stress,” states Francois Prinsloo, PwC’s Africa Banking and Capital Markets leader.

Standard Bank, our regional winner, led the pack with a 27% increase in headline earnings at $2.3 billion from $1.7 billion, while ROE rose to 18.8% from 16.3%.

Zenith Bank defied Nigeria’s economic mess to post triple-digit profit growth. In the third quarter of last year, it posted a 149% increase to $368.4 million in profit before tax from $146.3 million for the same period in 2022.

Without a doubt, leadership has been the conspicuous standout against ferocious tides. Faced with turbulent waters, the top brass have risen to the occasion, sometimes being forced to make tough decisions. The strategic decisions have been diverse, cutting across the pursuit of organic growth for homegrown banks to aggressive mergers and acquisitions (M&A) ambitions for Pan-African lenders.

In Côte d’Ivoire, Bridge Bank is positioning itself as a distinctive niche bank, investing $20 million to build muscle and control the local market. Pan-African lender Access Bank, the winner in Ghana, is pushing to conquer the continent through acquisitions. Its latest foray is in Kenya, where it is taking control of the National Bank of Kenya (NBK) at an estimated $100 million price tag.

Managers have also demonstrated the need to be pragmatic. By exiting markets where performance is below par and focusing on markets with solid positioning, global banks like Societe Generale and Standard Chartered have shown that if it cannot be fixed, it can be discarded.

Apart from making tough decisions, the focus on core business has also been notable. Management has deliberately mobilized deposits and pushed loans to grow the balance sheet, increasing customer numbers and investing in technology, digitalization and innovation.

Banks have also invested in new products and services while remaining alert to risk management. And they have been keen to attract and retain quality talent. More importantly, operations are aligned to new realities, including climate change. This has made sustainable, green and climate-smart financing integral to lending.

“Outstanding” perfectly describes Standard Bank, Africa’s regional overall Best Bank and winner in its home market of South Africa as well as Malawi. Standard Bank has strategically expanded its reach across the continent, and today its Africa Regions franchise is a force driving profitability.

In 2023, the franchise contributed 42% to group headline earnings, up from 36% the previous year. Headline earnings stood at $960.3 million, up 49%, with ROE at 28.1%, compared to 21% in 2022. The top eight contributors were Ghana, Kenya, Mauritius, Mozambique, Nigeria, Uganda, Zambia and Zimbabwe.

Building a strategy around regional presence has been instrumental for Standard Bank, which boasts $160.7 billion in assets and 18.8 million clients across 19 markets. This strategy has helped maintain a healthy balance of performance even when economic crises have battered some key markets.

Performance in the bank’s home market is an indicator. Given the strain in the operating environment and stiff competition, South Africa contributed 38% of the group’s earnings last year, down from 48% in 2022. Headline earnings grew by a paltry 3% to $881.6 million, from $855.2 million in 2022. ROE declined to 14.6% from 15.2%. The South African market, however, has been a highflier in digital adoption. In 2023, digital retail clients increased by 8%, with $2.1 billion distributed via the bank’s digital wallet platform alone.

The positive Africa franchise growth gives Standard Bank the impetus to venture into North Africa, the only African region in which it has no current presence. The bank’s plans, coupled with ongoing investments in convenient digital channels and sustainable finance, aim to position it as a driver of Africa’s growth in line with its “2025 Ambition” blueprint.

A clear pointer is Malawi, where Standard Bank wins our Best Bank award for the third year running. By deploying a robust digital strategy, the bank essentially controls 25.4% of the loan market share and 24.1% of deposits. Notably, 91% of transactions are carried out on digital channels, with the bank disbursing $41 million in loans digitally.

Societe Generale (SocGen) is convinced that Africa’s harmonious development is key for the world. For this reason, the bank is determined to continue supporting Africa’s sustainable development, with a critical focus on small and midsize enterprises (SMEs), infrastructure financing, agribusiness, renewable energies and financial inclusion.

While its continued presence is indisputable in Africa, where the bank’s ties go back over 100 years, the bank also opts for pragmatism. Political instability, economic upheavals and regulatory complications have forced a critical review of its operations on the continent.

Last year, SocGen announced its exit from six markets: Burkina Faso, Mozambique, Congo, Equatorial Guinea, Mauritania and Chad. It says it has also “launched a strategic review” of its stake in the Tunisian market.

SocGen remains resolute that the exits are necessary to enable it to “concentrate its resources on markets where it can position itself among the leading banks in synergy with the group’s other businesses.” Some 11 markets offer these prospects. They include Cameroon, Madagascar and Senegal, all three in which the bank emerged as our Best Bank winner.

In Cameroon, the bank is our winner for the sixth year running. The bank is implementing strategies to cement its market dominance, opening new branches and increasing its presence on digital platforms while guaranteeing the security of systems, data and transactions. With an average 15% market share for loans and deposits, it posted $49.3 million in profits in 2023 with a 23.8% ROE.

Madagascar is another low-hanging fruit for SocGen. The banking industry is vastly underdeveloped, with less than 10% of the population possessing a deposit account. Despite this, the bank commands 24.3% of the market share in loans and 22.5% of deposits, with more than $1 billion in assets.

In Senegal, SocGen is reveling in the aversion of a full-blown political crisis that early this year threatened the country’s status as one of Africa’s stable democracies. The bank boasts 260,000 clients and has been a key oil and gas industry financier. It is also a key partner of SMEs, particularly in the trade, transport and agriculture sectors.

Ecobank, another multicountry winner, is positioning itself as the ultimate bridge to foster intra-African trade and investments under the African Continental Free Trade Agreement. To tap the opportunities, the bank, with a presence in 35 markets, has established its Single Market Trade Hub, MyTradeHub, and partnered with the Pan-African Payment and Settlement System. In March this year, it signed a $250 million senior unsecured bridge-to-bond loan facility, building stronger liquidity buffers.

The winner in Benin, Ecobank is unrivaled in the corporate and investment banking market segment, boasting $422.1 million in deposits and $315.2 million in loans. The bank also deploys leading-edge technology, including the March launch of Prêt Xpress, a mobile microloan service accessible through a mobile wallet, targeting more than two million customers.

The Best Bank in Togo as well, Ecobank has thrust competition aside to maintain a tight grip on the market. The bank, whose assets in the nine-month period to September 2023 stood at $992.3 million, saw year-on-year profit before taxes increase by 22% to $20.2 million.

UBA, our winner in Burkina Faso and Sierra Leone, believes the Economic Community of West African States (ECOWAS) is a critical bedrock for development. In February, the bank was a key backer and the official sponsor of the ECOWAS Mining and Petroleum Forum.

Ironically, Burkina Faso has joined with Mali and Niger to form a separate alliance and exited the bloc, to which it contributed about 8% of GDP. The country, together with Niger, also intends to leave the West African Economic and Monetary Union, whose members use the CFA franc, which is pegged to the euro.

These developments are enormous threats to UBA. The bank has been building a strategy around cross-border payments, remittances and trade finance in the country. All are interlinked with membership to the two economic and monetary groupings. Despite the worsening political risks, UBA in Burkina Faso is determined to soldier on.

The narrative is different in Sierra Leone, where UBA is also our winner. The bank, which prides itself on a solid customer base of 400,000, posted $12 million in profits, with assets hitting $128.7 million. In January, Mohamed Alhajie Samoura was appointed CEO to steer the next growth phase.

The banking industry in West Africa is experiencing a drastic shift. At the heart of the disruptions are homegrown Pan-African banks on an acquisition spree. Vista Group and Coris Bank have made strategic acquisitions, transforming the landscape in the highly competitive region.

Banco Comercial do Atlantico (BCA), Global Finance’s Best Bank in Cape Verde, is gearing up for ownership change. Caixa Geral de Depositos, the state-owned Portuguese bank, has agreed to offload its 59.8% share in BCA to Bahrain-based iibGroup. Meanwhile, BCA posted $16.8 million in profits.

Bridge Bank is our winner as Best Bank in Côte d’Ivoire for the fourth year in a row. The bank is unrivaled in the micro, small, and midsize enterprise (MSME) market; and to tighten its grip, it plans to allocate 35% of its credit portfolio to MSMEs by 2026.

BANGE, our winner in Equatorial Guinea, is feeling the adverse impacts of an economy projected to remain in recession for the foreseeable future. While key metrics, including a surge in nonperforming loans, are blinking red, the bank remains steadfast in fulfilling its customers’ financial needs.

GTBank is our winner as Best Bank in Gambia. The bank is not only using its extensive branch network to build partnerships with public bodies to collect revenue, but is also deploying digital channels to increase retail-market penetration.

The Ghanaian economy is showing signs of stabilization after a turbulent period. For Access Bank, the country’s winner, the impacts are already being felt, with net profits surging by 47.1% in the third quarter to $34.4 million, from $23.3 million in the same period of 2022.

In Guinea, VISTA Bank takes home the award. The bank is not concealing its unbridled ambitions to become a force in West Africa driven by inorganic growth. The bank is mobilizing resources from partners like development-finance institutions Proparco and Shelter Afrique to support SMEs and affordable housing and expand in the country.

Banque Atlantique wins in Mali. The bank is investing heavily in technology and digital transformation to cement its dominance of the retail market and drive financial inclusion.

Global Finance’s Best Bank in Nigeria, Zenith Bank, is on a roll with record profits. In March, the bank announced that Adaora Umeoji will assume the CEO role on June 1. She becomes the first female chief since the bank’s inception.

Banco Angolano de Investimentos (BAI) wins as the Best Bank in Angola for the fourth consecutive year. With $5 billion in assets, comprehensive geographical coverage, and user-friendly online banking services through BAI Directo, the bank commands a 20% market share.

In Botswana, First National Bank tops the class. The bank has a tight grip on the market, with $1.6 billion in deposits, $1.1 billion in loans, $102 million in profits and an ROE of 32% for the year ended June 30.

The Best Bank in Mauritius, AfrAsia Bank, has built a winning strategy around private, corporate, institutional and international banking. For the six months ended December 2023, it posted $76.1 million in profits.

Millennium Bim remains unrivaled in Mozambique, where it is our winner. With about two million customers, the bank commands a 22.5% market share in deposits and 15.9% in loans.

In Namibia, the First National Bank is the country’s crown jewel. The bank posted $78.7 million in profits and an ROE of 26.2%, with a customer service score of more than 80%.

Zanaco is the Best Bank in Zambia. Over the past five years, the bank has facilitated over $300 million in funding for corporates and SMEs and is implementing its 2025 plans.

In December, CBZ Bank, our winner in Zimbabwe, saw its chairman retire and its CEO appointed as its acting chairman as part of its measures to pursue sustained growth in a market where it commands a 34% share in assets and 29% in deposits.

Global Finance’s Best Bank in Algeria is Banque Nationale d’Algerie. The state-owned lender, which posted $440.3 million in net profits, is battling for a bigger Islamic banking market with four new products. The bank is pushing growth through regional expansion.

Yet again, the winner in its country, CIB Egypt has reenergized its SME, affluent and mass-market segments to consolidate its leadership. It boasts 83,000 SME clients, whose deposits totaled $1.9 billion.

Attijariwafa, the Best Bank in Morocco, is an indisputable powerhouse. The bank has 12 million customers. Through its universal banking model, it has an asset base of $65.6 billion and has extended loans totaling $39 billion.

Sudan is in tatters due to the ravages of war. Omdurman National Bank, the country’s winner, has not been spared. The bank has been forced to migrate most services online and through mobile banking.

Though Tunisia is trying to navigate a brutal economic crisis, this has not stopped Best Bank winner Amen Bank from pursuing its aggressive 2022-2026 strategic plan, which is anchored on attracting new clients and mobilizing deposits.

CAC International Bank, which carries the crown in Djibouti, posted 38% profits, to $2.3 million in 2023, and a 10% ROE. Besides being a digital banking and trade finance leader, the bank is big in the card business.

Awash Bank is our winner in Ethiopia. As the country’s leading private bank, it has been aggressively expanding, opening 150 new branches. Commanding a 20% market share in assets, 18% in deposits and loans, and 16% in customer base, the bank posted $172.5 million in profits.

This year’s winner for Kenya, Co-operative Bank, is recording phenomenal growth riding on agency banking. With a network of 17,000 agents and a solid digital footprint, it facilitates 91% of transactions via digital channels.

In Tanzania, CRDB Bank once more comes away with the award. The bank ushered in a new era of sustainable investment by issuing a pioneering $300 million Kijani bond for green financing.

Centenary Bank, the winner in Uganda, celebrated its 40th anniversary in 2023. With 2.4 million customers, the bank is pursuing growth through regional expansion.

Bank of Kigali remains best in Rwanda for the fourth year in a row. The bank boasts over 30% market share across key metrics and prioritizes financial inclusion as a core tenet of its growth.

Rawbank wins in the DR Congo. With $4.9 billion in assets, $234.8 million in profits and 39% ROE, the bank is pushing ahead with digital transformation after recording a 40% increase in uptake last year.

The French giant caused tremors, then, with the announcement on April 12th that it is closing shop in Morocco. Present for over a century, SocGen boasts of $12 billion in assets in the mountainous kingdom, with over one million customers and 300 branches. It controls an 8% market share in loans and 7% in deposits, ranking as Morocco’s fifth-largest bank.

Despite that solid presence, SocGen is offloading its 57.67% stake in Société Générale Marocaine de Banques, along with its subsidiaries, to the Moroccan conglomerate Saham Group in a deal valued at €745 million ($792 million).

The announcement was not entirely a shocker, however, says Rafael Quina, senior director, Financial Institutions at Fitch Ratings; overall, it falls in line with Group CEO Slawomir Krupa’s plans to refocus SocGen on areas of competitive strength and where its presence fits its risk appetite. While SocGen’s business in Morocco had reasonable scale and performed adequately, return on equity did not meet the cost of capital required to maintain the bank’s presence.

“The strategic fit and synergies with other group business lines were not core enough to compensate for this just adequate ROE,” says Quina.

Banking ROE in Morocco has averaged 10%, lower than in most emerging economies, he notes, which is why even homegrown banks are expanding to more volatile African markets in pursuit of higher profits. Saturation, too, is making it difficult for banks, particularly foreign owned, to grow the credit market in Morocco. Notably, other French banks like Credit Agricole and BNP Paribas are also reviewing their strategies in the kingdom. With SocGen exiting, the share of banks with foreign ownership in the sector’s domestic credit niche is set to decline to 5%, from 19% as of 2021. Significantly, too, it heralds the return of Saham founder Moulay Hafid Elalamy, described as the “Moroccan wolf of finance,” to the kingdom’s financial sector. In 2018, Saham sold its insurance business to South Africa’s Sanlam for $1 billion.

The bold and highly risky move would include a $100 million offer for KCB Group’s subsidiary, which is 1.25 times NBK’s book value.

The bank has been a bottomless pit for KCB, which has pumped $105.4 million into it over the past five years but remains in breach of core and capital ratios.

The challenges of cleaning up NBK, which is grappling with a 25.3% ratio of non-performing loans, have weighed heavily on KCB and have contributed to a 15% drop in pretax profit to $367.4 million last year for the group.

“KCB has struggled to turn NBK around, which needs additional recapitalization. It wants to let go of that burden,” says Eric Musau, head of research at Kenya-based Standard Investment Bank.

Access Bank, which will acquire 100% of NBK subject to regulatory approvals, does not see a burden. In its view, NBK represents a significant milestone in its determination to build scale and join the league of Tier 1 lenders in the highly competitive Kenyan market.

“Tier 1 banks dominate profitability. Building scale will catapult Access Bank to that club,” says Musau.

Access Bank, which entered the Kenyan market in 2020 after paying $12.8 million for Transnational Bank, currently has a network of 22 branches. With NBK’s 85 branches, it will reach 107 branches countrywide.

Apart from branches and a sizable retail clientele, Access Bank also will acquire high-profile government and state-owned enterprise accounts; prior to KCB’s acquisition, NBK was largely under the state’s control.

The deal also moves the lender closer to achieving its ambitions of dominating critical trade corridors, essentially positioning it strategically to address the African Continental Free Trade Agreement’s financial needs.  Still, signing a binding agreement is one thing, but actualizing it is a different matter. Last year, Access Bank’s plans to acquire a majority stake in Sidian Bank, a Tier 3 Kenyan lender, fell through.   

Equity capital markets enjoyed an extra boost last year, as the MSCI World Index and the S&P 500 each gained just over 24% in 2023; however, the equity capital markets issuance volume failed to keep up, rising only 8%, according to Dealogic, which attributed the sluggish pace to elevated interest rates plus ongoing geopolitical turmoil. Regionally, relatively strong issuance in the US, Europe, and Japan was offset by weakness in Latin America, Asia excluding Japan, and the Middle East.

The initial public offering (IPO) market is looking to shake off sluggish growth this year with an improved economic outlook. However, headwinds, including uncertainty surrounding the US elections, may prompt issuers to come to market sooner rather than later.

This year’s regional winners are recognized for their comprehensive equity capital markets platforms, leadership in executing transactions, and depth of knowledge across most key industries. —DS

With operations in 35 countries, Bank of America Securities (BofA Securities) boasts a powerful equity capital markets franchise that has achieved notable gains in league table rankings both globally and regionally. Despite sustained high interest rates, BofA’s ranking in global issuance volume rose four spots to second place, with $39 billion across 266 deals, for a 7% share, while its global revenue ranking improved two places to fourth, for a 6% market share, according to Dealogic.

Regionally, the bank claimed the top spot in Europe, the Middle East, and Africa (EMEA) equity issuance volume rose from fourth place year-over-year, with $11 billion in proceeds on 54 deals, for a 9% share. In the Americas, BofA held steady at third place in US issuance, with $18 billion in volume and a 12% share, and cracked the top 10 in Canada, up from thirty-first last year. In Latin America, it rose three spots to second place in deal volume, with $2 billion across 33 deals, for a 15% share, nearly surpassing the regional leader, Itaú BBA.

BofA moved up one spot to tenth in Asia excluding Japan, with $4.9 billion in equity issuance, for a 3% share; and it gained ground in IPOs in the US and EMEA, rising to fourth and fifth place, respectively. The bank is well-positioned to build on these gains, given its deep execution capabilities and exceptional sector knowledge. —DS

Macroeconomic upheaval has not dampened optimism at Chapel Hill Denham. “Africa’s long-term story is a growth story,” says partner Phil Southwell. As banks and corporates seek to bolster their equity to meet the twin challenges of financing organic growth on the continent and recapitalizing, issuance volumes will continue to grow, he predicts.

Chapel Hill Denham sits at the pinnacle of Africa’s equity capital markets. The firm’s team boasts more than 280 years of collective experience. Since 2017, the firm has dominated issuance in Nigeria with over 57% market share, participating in over 48% of completed transactions last year. Over the 12 months ending last October, the firm oversaw equity capital markets deals worth $421.6 million. It acted as lead bookrunner for its Nigeria Real Estate Investment Trust, which collected $95 million through a Series II fundraising. The transaction, the largest ever for a REIT, was 125% oversubscribed. —JN

DBS is the Asia-Pacific region’s leading equity house, thanks to its agility in structuring equity solutions; and it aims to maintain its standing by embracing new opportunities and challenges and improving its strategic vision.

In REITs and business trusts, DBS retains the top ranking in the capital markets of Singapore and the Association of Southeast Asian Nations as a whole. In Hong Kong and Indonesia, it offers customized solutions to state-owned entities and privately owned small and midsize enterprises. In 2023, DBS acted as lead financial adviser, joint global coordinator, joint bookrunner, and underwriter on several equity offerings on the Singapore Exchange, signaling a post-pandemic comeback for Singapore equity capital markets.

In 2020, DBS received permission from the China Securities Regulatory Commission to establish a majority-owned subsidiary, DBS Securities (China), which operates in the mainland’s onshore equity capital market and also provides services to Chinese clients on their cross-border equity financing initiatives. —LZ

The leading bank in Central and Eastern Europe, ranked by net income, equity, and customer base, PKO Bank Polski rode a remarkably good year for Polish dealmaking and equity activity to post continued positive results. The Warsaw-based giant continued to lead in its home country’s investment market, one of Europe’s liveliest IPO scenes last year. Driven by 15 debuts on the Warsaw Stock Exchange, in many of which PKO played a pivotal role, the region saw IPO activity soar.

Looking ahead, PKO’s customer-centric positioning and decades-long market dominance signal the investment bank’s intention to keep improving its key performance indicators into 2025. The bank aims to achieve a return on equity above 12% and cost-to-income ratio below 45% in investment banking next year, while holding the cost of risk to the 0.7% to 0.9% range. —TM

A key component of Banco BTG Pactual’s investment banking success is its talented team of bankers and an organizational structure that it periodically refines to meet shifting market dynamics and client needs. The current structure, organized around execution and industry groups, is designed to combine client-focused investment bankers with necessary expertise.

This structure allows BTG to be more responsive as it serves corporate clients in sectors including financial institutions, logistics and transportation, retail, technology, energy, electric utility, healthcare and pharmaceuticals, construction, and environmental and waste management.

Following equity markets’ strong regional performance last year that saw the MSCI Latin America index surge 33.5%, far outpacing the broader MSCI Emerging Markets Index, the outlook is for continued momentum aided by an easing monetary policy at many of the region’s central banks. Against this backdrop, BTG aims to improve its league table rankings. Last year it placed third in Latin American equity capital markets volume, with $1.8 billion in proceeds across 24 transactions, for a 14% market share, according to Dealogic. The bank kept its position as Brazil’s top equity capital markets platform, notching 19 deals for $1.6 billion in issuance. —DS

The Global Corporate Finance division of First Abu Dhabi Bank (FAB) operates a leading investment bank in the United Arab Emirates (UAE) and throughout the Middle East, offering deep local and regional knowledge across a range of sectors combined with strong origination and structuring expertise. The division’s international reach also affords extensive distribution capabilities to domestic and global institutional investors by virtue of its location within the UAE’s largest bank.

While equity issuance volume fell 47% in the Middle East and North Africa (MENA) region last year, according to Dealogic, FAB secured high-profile mandates from Abu Dhabi National Oil Company (Adnoc) for its IPO representing 5% of the company’s gas business and a separate IPO of 19% of Adnoc Logistics and Services. These transactions placed FAB among the top five banks in MENA equity capital markets, according to Bloomberg, and earned it 10th place in EMEA IPO fees, with a 2% share, Dealogic calculated. —DS

The outlook for renewed activity in North American equity capital markets is strong as economic conditions improve. The Federal Reserve Bank (the Fed) appears to have engineered a soft landing for the US economy after successive rate cuts to dampen inflation, and recession fears have subsided following strong GDP growth of 3.2% in the fourth quarter and 2.5% for the full year 2023. The IMF is now forecasting that US growth will continue, albeit at a slightly slower pace of 2.1% in 2024.

With falling unemployment and sustained levels of consumer spending supporting many US companies, analysts are predicting elevated rates to persist in the near term and cuts to materialize toward the end of the year. This bodes well for the equity capital markets, says Elizabeth Reed, global head of the equity syndicate desk at Goldman Sachs, in a February article on the company’s website.

“The Fed’s shift, and that of global central banks, will be a positive tailwind for the full suite of equity capital markets,” she states. Moreover, the IPO “pipeline is growing,” with increased activity expected “from financial sponsors and venture capital firms aiming to monetize their portfolios.”

Given this outlook, Goldman will seek to maintain and strengthen its first-place league table position in US equity issuance, bolstered by a 14% market share, 14% share in fees, 6% share in IPO proceeds, and 12% share in IPO revenues. —DS

European equity offerings jumped a solid 44% year-on-year in 2023, according to Dealogic; and UBS, our best bank in the region, was able to drive some of the year’s key transactions. The bank led not only in the volume of issuance but in the quality of its offerings, helping its customers take advantage of the positive momentum by providing tailored and unique opportunities within the equity spectrum.

Among several landmark transactions, UBS was joint global coordinator and primary issuer on the UK’s largest IPO since 2021, Admiral Acquisition’s €507 million (about $551 million) debut on the London Stock Exchange in May. It also served as sole global coordinator and bookrunner for a 108 million Swiss franc (about $121.6 million) primary accelerated book-building offering of shares in Swiss biotech Bachem Holdings and was the primary adviser on Societe Generale subsidiary ALD Automotive’s €1.2 billion rights issue, which was completed in 2022. —TM

Total global debt capital market activity improved slightly last year, hitting $8.9 trillion for the full year. That’s up 6% compared to 2022, according to Refinitiv. The number of new offerings brought to market last year hovered at around 29,300, an 8% increase compared to 2022. Issuance was weak during the fourth quarter, however, down 15% compared to the third.

High-yield offerings from issuers in the US, UK and Canada accounted for 76% of last year’s total, up from 72% in 2022. One attention-getting trend was so-called green bond issuance, which rose 10% to $422.3 billion.

Debt action also improved in the emerging markets, where corporate issuance totaled $268.4 billion, a 12% increase from a year earlier. Corporate debt issuers from India, Brazil, Thailand, and Malaysia dominated, accounting for 57% of emerging markets activity in 2023. —AN

Despite volatility owing to aggressive interest rate hikes by most global central banks, debt issuance volumes held up well in most regions of the globe, according to Dealogic. North American activity remained essentially flat; while Latin American, European, and Japanese issuance increased over 10%. The Middle East posted a 39% rise, while Asia, excluding Japan, saw an 18% drop.

Bank of America Securities (BofA Securities) navigated these markets well, maintaining and expanding its league table rankings in several global and North American debt categories. It kept its No. 2 spot in global issuance volume and fee income, with 6% and 7% market shares, respectively. In global investment-grade debt, BofA retained the top position and ranked second in international debt issuance.

In the US, BofA remained second in issuance volume and revenue. Its third-place ranking in European investment-grade debt represented a jump from eighth in 2022 and rose two spots to third place in Asia excluding Japan.

Many analysts regard 2024 with cautious optimism, given waning inflation, solid global growth projections, and the potential for central bank rate cuts in the second half of the year. One catalyst for expanded debt issuance could be recovery in M&A volumes, since acquiring companies would need to tap the high-yield bond and leveraged loan markets to finance their transactions. This would likely be a bright spot for BofA, given the bank’s progress in global and US high-yield issuance, as it rose from fifth- to third-place ranking in these categories in 2023. —DS

African debt issuers were locked out of the eurobond market for about two years owing to high interest rates and elevated risk profiles. For governments, this meant an increase in domestic borrowing; and corporates too looked to local markets for financing. That sparked a dramatic year-on-year increase in debt capital market issuance volumes on the continent.

“Risk remains a key factor, and that is why issuers must be agile and pick the right windows of opportunity,” says Brian Marshall, head of investment banking at Standard Bank.

Notably, Standard Bank helped Kenya avert possible default on $2 billion in eurobonds through a buyback issuance under tight market conditions. By staying close to its markets, Standard Bank has enabled corporates to attract private capital. Case in point is $1 billion in senior unsecured notes that it raised for troubled South African ports operator Transnet, an issue that was approximately threefold oversubscribed. —JN

State-owned China Construction Bank (CCB) is the second-largest Chinese bank. Its customer-centric bond underwriting and distribution business has established a “one place and multiple centers” structure. With nearly 20 years of experience in the field, CCB is the only underwriter in China’s interbank market offering a broad range of innovative products. It actively promotes Beijing’s national strategies and facilitates the sustainability transformation of both state-owned and privately owned enterprises.

Deals in which CCB participated last year included carbon-neutrality bonds, sustainability-linked bonds, rural revitalization bonds, and energy-supply guarantee bonds. The bank also led in creative special products for nonfinancial enterprises, floating China’s first hybrid science and technology innovation bill REITs and Volkswagen’s first panda bond. —LZ

Economic activity in Central and Eastern Europe rebounded substantially in 2023, after two difficult years owing to the pandemic-driven slump and the war in Ukraine; and Erste Group helped the region’s corporate issuers raise the funds needed to support growth. Through best-in-region debt issuances, the Vienna-based bank leveraged its leadership to secure some of the most important deals of the year.

Among these was a €600 million (approximately $656 million) package of sustainability-linked bonds for energy giant CEZ, for which Erste acted as global coordinator and green structuring adviser. Another cornerstone deal was the 2022 €500 million five-year, fixed-rate green bond issuance for Czech-based railway operator Ceske drahy. And in financial services, Erste acted as joint bookrunner on Romanian CEC Bank’s roughly $162.6 million issuance of senior nonpreferred notes. —TM

Interest rate cuts early this year put Latin America’s central banks ahead of the interest rate cycle compared with their global counterparts. The emphasis is on stimulating growth, and guidance from the banks indicates the easing bias will continue. Brazil lowered its benchmark rate by 50 basis points in January—its fifth consecutive easing—while Chile cut rates by 100 basis points and Colombia by 25. The hope is that these moves will stimulate regional debt capital markets and build on the momentum they exhibited last year when debt issuance volume rose 10%.

As part of Itaú Unibanco, Itaú BBA is the top debt capital markets platform in Brazil, managing $15 billion in issuance across 248 transactions in 2023, for a 26% market share, according to Anbima (Brazilian Association of Financial and Capital Markets Entities). The bank’s expertise covers financing solutions in investment grade, high yield, loans, liability management, and acquisition finance across industries that include chemicals, oil and gas, technology, roadways and tolls, and real estate. Itaú BBA led a $1.1 billion project finance transaction last year in what was then the largest-ever deal in the sanitation sector, benefitting 10 million people in Rio de Janeiro. The bank also arranged the largest-ever transaction in Brazil’s telecom sector, a $250 million issue. —DS

Emirates NBD Capital (EmCap) operates one of the region’s leading debt capital markets platforms, providing comprehensive origination, structuring, and distribution expertise across a range of debt products. Debt issuance across the Middle East and North Africa (MENA) region surged 39% last year, far outpacing other regions. EmCap benefitted from the boom, managing $39 billion across 72 deals, representing an increase of 180% over its 2022 business.

EmCap ranks among the MENA league tables’ top four banks, notching 52 transactions for $38 billion in value for sovereign, corporate, and financial institutions last year. It is also active in Islamic finance, posting $2.1 billion in volume across 19 deals, for a 6% share last year, to make it MENA’s sixth-largest bank in the sector, according to Dealogic. In environmental, social, and governance (ESG) finance, EmCap raised $8 billion across 15 sustainable and green issues in the loan and debt capital markets in 2023, representing progress toward its goal of 100 billion Emirati dirhams (about $27 billion) in financings by 2030. The bank also advises clients on the use of proceeds, with a framework that includes sustainability performance targets.—DS

Debt capital markets staged a solid rebound in Europe last year, growing 11% over 2022 in total deal value. While the results were partly offset by a much larger jump in equity proceeds, new debt issues provided critical support to Europe’s economy as it navigated a challenging macroeconomic landscape.

Our Best Debt Bank in Western Europe, Deutsche Bank, secured solid gains through the issuance of 443 local deals that raised $259 million in proceeds.

Among the German powerhouse’s top deals was the European Bank for Reconstruction and Development’s $2.5 billion, five-year fixed-rate note issue in January of this year, for which Deutsche Bank acted as a joint bookrunner. It also served as joint coordinator for a 2023 $3.3 billion bond offering by Deutsche Boerse, a landmark deal of the year. —TM

M&A activity was notably lower among venture capital and private equity firms, with estimated declines of 39% and 35%, respectively, as reported by Bain & Company. Technology saw the most significant decline among sectors, with banking revenue resulting from the industry’s M&As dropping roughly 30% from the year prior.

But despite the overall gloomy picture, there were plenty of bright spots, especially in the oil and gas sector. Recall ExxonMobil’s pending $60 billion acquisition of Pioneer Natural Resources and Oneok’s $18.8 billion purchase of Magellan Midstream Partners.

Pfizer’s $43 billion merger with biotech company Seagen was the largest healthcare-related transaction. —TM

Consistently topping the league tables, Goldman Sachs continued the trend in 2023 despite a volatile and challenging M&A landscape. The company retained its top ranking in global M&A volume and revenue with solid market shares of 29% and 10%, respectively, according to Dealogic. Global M&A activity is seeing a resurgence following a significant decline over the past two years, as uncertainty related to the heightened interest rate environment, geopolitical instability, and concerns over a possible economic recession depressed merger activity. The weakness in deal-making that began in 2022 extended through 2023, as global M&A volume fell 13% to $3.1 trillion. Revenue slid 25% to $27.8 billion, reflecting a sharp decline of 40% in the technology sector. While geopolitical tension persists, many economic fears have waned; and global central banks have shifted to a rate-cut bias as 2024 unfolds. This bodes well for Goldman Sachs to capture renewed deal activity. Better fundamentals combined with improved confidence among global CEOs may unlock a backlog of transactions to allow companies to make strategic acquisitions. —DS

According to LSEG (formerly Refinitiv), the value of M&A transactions in sub-Saharan Africa stood at $12 billion during the first six months of 2023. That’s a 51% decline and the lowest first-half total since 2020. The number of deals also plunged by 23% compared to the previous year, representing a 10-year low. Despite the slowdown in deal-making, Absa Bank demonstrated energy in corporate finance advisory and M&A. Riding on its commitment to build a reputation of supporting Africa’s growth sustainably by targeting more than $6 billion in sustainable lending by 2025, the bank continues to be active in deals, particularly in sectors like renewable energy, manufacturing, and information and computing technologies. Its key deals include acting as the sole adviser in a landmark transaction that saw South Africa-based technology group Alviva become a privately held and majority Black-owned company. This entailed a cash offer of 2.5 billion South African rands (about $132 million). —JN

CCB International has built a reputation as the leading provider of M&A advisory services regarding the volume of deals and the total value. China Construction Bank’s (CCB’s) wholly owned Hong Kong subsidiary company offers various M&A advisory services covering divestments, acquisitions, restructuring, capital market takeovers and privatizations, and leveraged buyouts. Since 2020, CCB International has expanded its environmental, social, and governance (ESG) bond issuances with green, social, and sustainability-linked bonds, as well as transition bonds: 16 ESG bonds were issued in 2023. Since 2014, CCB International has also ranked as one of the top 10 houses for initial public offerings (IPOs) in the Hong Kong global finance market, specializing in large deals involving Chinese enterprises, building on its credentials in the Hong Kong market, and benefiting from the influence in mainland China of its parent company, CCB. —LZ

Despite the broad-based slowdown that cut merger activity in larger Europe by 37% from the previous year, Central and Eastern Europe’s (CEE’s) deal-making remained resilient in 2023. The better-than-expected numbers were driven by thriving action in Romania’s banking sector and substantial changes in the region’s telecom industry. Against this backdrop, UniCredit positioned its clients to take advantage of some of the year’s most important moves, such as the Emirates Telecommunications Group Company’s acquisition for up to €2.5 billion (about $2.7 billion) of PPF Telecom Group’s assets in Bulgaria, Hungary, Serbia, and Slovakia. As a result of its best-in-breed M&A advisory activity, the Italian giant garnished a reported excess of more than $10 billion in cash, which it used to boost its M&A adviser team by hiring as many as 20 bankers throughout the year and moving deeper into CEE with acquisitions of its own. In October, the Italian bank took over Alpha Bank Romania. —TM

Banco BTG Pactual is the leading Latin American bank in M&A, with regional operations in Brazil, Chile, Peru, Colombia, and Mexico. Its team extends to New York, and the bank looks to leverage advisory opportunities across its global emerging market franchise. BTG successfully cultivates long-term relationships with a large and diverse group of Brazilian and Latin American issuers and identifies large Latin American and international investors. A challenging operating environment in 2023 resulted in M&A revenue declining by 37%, according to Dealogic. However, BTG continues to build impressive market shares in the region, with $20 billion in deal volume across 65 transactions, for a 25% share in 2023. It is Brazil’s dominant investment bank, placed first in deal volume with $19 billion across 60 transactions, for a 39% market share. On the revenue side, the bank ranks fifth in M&A fees in Latin America and fourth in Brazil. —DS

Standard Chartered (StanChart) operates a dominant global bank with a solid local franchise in the Middle East, a skilled team of bankers, and extensive tenure, to serve nine regional markets. Its investment banking operations consistently demonstrate its comprehensive M&A capabilities by securing high-profile strategic advisory mandates for regional governments and large multinational corporate clients in key industries. Supported by 120 industry specialists in five global locations, StanChart offers broad industry coverage of critical sectors of oil and gas, power utilities, infrastructure, technology, metals and mining, clean technology, and commercial real estate. Its scale is a competitive advantage, and its Middle East business can leverage an extensive global investment banking network to provide international reach with clients and investors. As economic uncertainty and global instability in 2023 depressed the environment for new transactions, overall M&A revenue fell 43% in the Middle East, according to Dealogic. However, the bank’s strong local and regional franchise, combined with support from the broader global team, is particularly valuable and positions the bank to capture new M&A mandates as the market recovers in 2024. —DS

The outlook for renewed M&A activity has improved following a sluggish environment in 2023, which was caused by recession fears and rising interest rates to combat inflation, and exacerbated by regulatory impediments from the US government’s antitrust stance. While these factors resulted in a 7% decline in North American M&A volume, Morgan Stanley’s volume of business rose slightly in 2023, according to Dealogic. However, the firm expects stronger momentum in 2024, as fundamentals have improved with moderating inflation, the resilient US economy, and recent strength in the equity markets. A prolonged period of elevated interest rates means financing is more expensive for M&A deals. Still, the Federal Reserve appears to be at the end of its tightening cycle, with a shift toward a more accommodative monetary policy. Additionally, Morgan Stanley believes that improved financial markets, healthy corporate balance sheets, and CEO confidence will catalyze a rebound in activity, particularly in the energy, healthcare, and technology sectors. Additional M&A traction could result from the return of financial sponsors as both buyers and sellers, corporate reorganizations involving spinoffs to streamline their business or raise capital, and economic challenges in regions of the globe spurring acquisitions in the US. —DS

Despite equity offerings jumping, on improving inflation and expectations of a more dovish European Central Bank in 2023, companies remained reluctant to balloon their balance sheets through acquisitions. As a result, European M&A activity dropped by a hefty 37% in the year, with utilities and technology being the most affected industries. But in the face of the challenging scenario, our Best Bank in Western Europe, J.P. Morgan, saw an opportunity to overtake rival Goldman Sachs as the leading adviser in the region. With an impressive 164 deals in the region, worth $209 billion, and $594 million in proceeds, the New York-headquartered global behemoth closed the year with a 7.2% share of the European M&A market. Among J.P. Morgan’s most significant deals landed in the year were the historic takeover of Credit Suisse by UBS and the €22 billion takeover of Telecom Italia by private equity group KKR, in which the bank served as a primary adviser for both parties. —TM

Infrastructure finance has seldom been as pivotal to the well-functioning global economy as in recent years. Between efforts to reestablish essential commodity pipelines amid the war in Ukraine; the timely reconstruction efforts of Turkey and Morocco after 2023’s disastrous earthquakes; and the continuous technology investment in the US, the Middle East, and China, future economic growth has become ever-more dependent on such initiatives.

However, while governments and multilateral institutions continued to prioritize infrastructure, private deal-making felt the blow delivered by higher interest rates and did not quite keep up.

According to Preqin, infrastructure funds raised $87.75 billion last year, a dismal 50.2% lower, year over year, from the $176.1 billion recorded in 2022. Deal value also declined 26.6% last year, totaling $308.5 billion in 2023, down from $420.4 billion the year before.

Our winners are the ones who were best able to pull through the challenging conditions to keep the economy moving forward despite adversities.

—TM

Infrastructure modernization is a crucial priority; and Banco BTG Pactual (BTG) is leading many such initiatives regionally and globally as one of the largest investment banks in Latin America, with a footprint in North America and Europe.

Among the firm’s accomplishments in 2023 were acting as lead bookrunner for Electrobras, or Centrais Elétricas Brasileiras SA — a company that boasts an installed capacity of 43 gigawatts with 97% of it being clean energy. The offering was one of the largest ever priced in Brazilian fixed income capital markets and the biggest transaction ever issued by Electrobras. 

With its specialized team providing financial advisory, issuance coordination, and specific financing structures for energy and infrastructure projects, the bank has differentiated itself by leading high-profile domestic and cross-border financing deals across various aspects of infrastructure, including electric power generation and transmission, renewable energy, water sanitation and waste management services. 

Notably, within debt capital markets, BTG has consistently demonstrated its expertise in arranging complex structured transactions with its leadership in the issuance of infrastructure debentures and advisory services to credit market issuers and participants. To extend its global reach and to attract investment from international institutional investors, BTG’s asset management division has managed a series of infrastructure funds that target the transportation, power, renewable energy, healthcare services, and life sciences sectors. —DS

For a long time, African governments had been left to shoulder the burdens of infrastructure financing. The situation is changing with increasing private sector participation across areas like renewable energy, railways, and ports. Rand Merchant Bank is buoyant, and the trend will continue.

Infrastructure finance has become Rand Merchant’s forte. The bank has been involved in numerous projects supporting economic growth by deploying a model balancing risk and return and prioritizing impacts. The bank acted as the lead arranger of syndicated facilities that mobilized $2.4 billion for Tanzania to finance a major railway project to boost regional trade and economies significantly. Rand Merchant has also arranged financing deals to enable South African renewable energy company African Clean Energy Developments to eventually deliver 520 MW of wind energy. —JN

This year’s regional winner for infrastructure finance,Asian Infrastructure Investment Bank(AIIB), kicked off 2024 with a record-breaking $3 billion funding of a five-year sustainable-development bond. The financing effort is part of the Beijing-based bank’s “Infrastructure for Tomorrow” campaign—prioritizing green projects with sustainability at the core. AIIB lived up to that motto throughout 2023 when it approved a proposal to issue $1 billion in credit guarantees against sovereign-backed loans made by the World Bank’s lending arm. AIIB is also helming a $571 million project to improve 4,350 miles of roads across 11 regions in the northern Côte d’Ivoire and to maintain a further 9,321 miles of rural roads there. The AIIB is advancing $200 million, the World Bank $300 million, and the rest will come from the Ivorian government. The AIIB is a young company, having begun operations in January 2016. Since then, it has grown to have 109 members worldwide and capitalized at $100 billion. —AN

Our Best Investment Bank for Infrastructure Finance in Central and Eastern Europe, Akbank, takes home its award for relentless humanitarian efforts in reconstructing several Turkish cities after the devastating earthquake that shook the country in 2023. In partnership with the European Bank for Reconstruction and Development (EBRD), as part of its Türkiye-Disaster Response Framework, Akbank channeled as much as $90 million into various sectors of the economy. The allocated funds were intended to support the impacted communities in revitalizing small and midsize enterprises while broadening access to financial prospects. The project was essential to the reconstruction efforts within numerous regions of the country affected by the quake. —TM

In Latin America, Bradesco BBI is leveraging one of the largest investment banking teams in the region to deliver comprehensive financing and merger expertise in the infrastructure sector. The bank has executed numerous mandates on projects across various industries, including water and sanitation, power and energy, renewables, transportation, logistics, and highways and toll roads. Expanding global shipping networks is essential in order for companies in Latin America to continue to grow through international trade. Bradesco is a key participant with the region’s exporters and importers as the leader in port terminal transactions. This factor has been critical to Latin America’s post-pandemic recovery. As the definition of infrastructure assets evolves to include a broader range of sectors, Bradesco is poised to respond quickly to new opportunities, given its deep industry coverage of over 200 companies in Latin America, including over 90% of companies in the MSCI Brazil Index. —DS

Operating across nine markets in the Middle East, Standard Chartered (StanChart) is firmly entrenched; and its long-standing presence in the region continues to expand, given its strong capabilities in leading high-profile infrastructure transactions. Infrastructure finance increasingly overlaps with many industries, including oil and gas, clean energy, and technology; and StanChart has differentiated itself through its deep expertise in various sectors and its robust execution capabilities involving both conventional and Shariah-compliant financings. By leading complex transactions involving critical sectors like ports, logistics hubs, industrial and business parks, water treatment, renewables, and power generation, StanChart has established itself as a vital partner for governments, public investment funds, and large corporate clients for M&A and financing mandates in the infrastructure sector. Multinational clients also benefit from the bank’s international reach by leveraging a global network of nine hubs and 27 locations for complex structuring and execution capabilities, with innovative and customized solutions. —DS

The demand for infrastructure financing and investment is growing; and Goldman Sachs is well positioned as a leader in this area, with industry coverage through the firm’s public sector and infrastructure group providing M&A and financing solutions for state and local governments, not-for-profit healthcare systems, higher education institutions, public power utilities, transportation and mass transit agencies, airports and seaports, and sports franchises.

As the scope of infrastructure has evolved beyond roads, railways, and bridges, Goldman is building on recent legislation in the US, including the Infrastructure Investment and Jobs Act and the Inflation Reduction Act, which have provided incentives to advance infrastructure investment beyond these traditional areas. This includes expanding the country’s digital infrastructure; modernizing the energy grid in the US to accelerate the transition to clean and renewable energy; and improving supply chain logistics, communications, and transportation. Additionally, investment banking mandates are complemented by opportunities to invest in this asset class through the firm’s asset management arm, which recently launched a $4 billion fund for investment in infrastructure projects tailored to institutional and high net worth investors. —DS

It was a fantastic year for BNP Paribasacross various facets of the investment banking world, with the bank topping growth expectations in several markets and asset classes.

However, BNP landed some of its most important landmark accomplishments in infrastructure finance. The French-based giant maintained focus on its long-term green transition goals and joined efforts with multilateral institutions to support development and reconstruction amid 2023’s volatile landscape.

In partnership with the EBRD, the French behemoth invested around $80 million in developing green energy infrastructure in Poland. The bank also launched its flagship Climate Impact Infrastructure Debt fund with a capital-raising target of €500 million to €750 million (about $542 million to $812 million), which aims to support the long-term transition of clean energy across different geographies in Europe. Also, alongside the EBRD, BNP’s Turkish subsidiary Finansal Kiralama, provided an essential $28 million to support Turkey’s green energy transition, in the aftermath of the destructive earthquake early last year. —TM

This environment failed to spark a meaningful uptick in global M&A activity, which fell to its lowest level in 10 years. In 2013, when dealmakers were still reeling from the 2008 financial crisis, bankers reportedly inked just $2.8 trillion worth of deal volume.

The initial public offering (IPO) category was equally tough in 2023, but slightly more optimistic thanks to a slow, but exciting, stream of initial offerings like Arm Holdings ($4.9 billion), Maplebear ($660 million), and Klaviyo ($576 million).

Still, bankers are optimistic about 2024. A McKinsey report indicates that all regions enjoyed a fourth-quarter surge in M&A action, evidenced by global M&A activity spiking 41% in 2023’s fourth quarter compared to the preceding three-month period, and 37% in value from a year earlier, to $1 trillion. —AN

In 2023, Standard Bank oversaw 60 deals and raised $18.2 billion in support of client investment and growth initiatives. “We focus on the main themes driving growth in our present markets,” says Brian Marshall, head of investment banking. Energy transition, infrastructure expansion, mining, sovereign borrowings, sustainable financing, refinance, and capital optimization have been those key overriding themes. With a presence in 20 markets, the bank has a footprint across all aspects of investment banking, including structuring of multicurrency and multicountry facilities. In sustainable finance, where it tops most Dealogic league tables, the bank mobilized $4.7 billion in finance and intends to target $13 billion by 2026. Standard Bank’s portfolio of deals includes participation in the ZAR 12 billion (approximately $647 million) syndicated facility for entertainment company MultiChoice and in Walmart’s acquisition of the outstanding shares in South Africa’s retail chain Massmart, having already acquired a majority stake in 2011.—John Njiraini

The Industrial and Commercial Bank of China (ICBC), one of China’s largest banks, has built Asia’s most significant asset pool, focusing on transportation, water conservancy, energy, and new infrastructure. The Beijing-based bank’s investment banking service is well known for integrated solutions. In 2023, the team outperformed its peers across the board, due to its one-stop investment banking service, which includes M&A, bond underwriting, debt restructuring advisory services, syndicated lending, and equity investment and underwriting. Moreover, ICBC’s comprehensive project design and execution helped several Chinese conglomerates close their domestic and cross-border transactions in 2023. ICBC views innovation as a core competency in creating commercial value and as a social responsibility. The bank also set up a research center that has helped different levels of Chinese government authorities on economic and industrial policies across nearly 150 sectors.—LZ

Amid a challenging year for European investment banking, due to lingering inflation and high financial costs, Bank Pekao exceeded market expectations and delivered above-average performance in 2023. For the full year, the bank’s operating income grew a hefty 40%, with profits before tax jumping from roughly $720 million in 2022 to a solid $2.1 billion in 2023. This has pushed the bank into an even more dominating position within its home investment banking market, with notable market share increases in debt and equity. Among the Polish-based giant’s greatest achievements in the year is the bank’s first-ever green bond issuance, for €500 million (about $545 million), which received backing from the European Bank for Reconstruction and Development. Moreover, Pekao landed a €68 million partnership with the European Investment Bank to extend new financing to support growth in small and midsize enterprises and Polish public sector companies. —LZ

Itaú BBA operates one of the leading investment banking franchises in Latin America and holds strong positions in M&A, as well as equity and debt capital markets—a result of the bank’s extensive sector coverage and well-established senior management, which has an average 23-year industry tenure. Itaú BBA has led transactions in key sectors including pharmaceutical and biotech, electric utility, energy, power transmission, technology, oil and gas, supermarkets, food manufacturing, automotive, real estate, and construction. Notable mandates include acting as global coordinator on the largest deal in the power and utilities sector in Brazil. In the rental car sector, the bank participated in the largest follow-on offering of the past 12 months. The strength of the bank’s platform is reflected in 2023 Dealogic league table rankings where Itaú BBA ranks third (up from fourth) in Latin America by revenue, for an 8% share. The bank rose to first (from second) in equity volume with $2 billion in proceeds across 33 transactions, for a 15% share. In debt capital markets, Itaú BBA holds the third spot in Latin American debt issuance volume and jumped to sixth (from 14th) in international debt issuance, for a 6% market share. In M&A, it holds the fourth spot (up from fifth) in revenue, with an 8% share; and it is fourth in M&A volume, with 33 deals, for $14 billion in value and a 15% share. In Brazil, Itaú BBA ranks second in volume, with 33 deals, for $14 billion and a 28% share.—DS

Emirates NBD Capital (EmCap) has built a strong track record in the Middle East and North Africa (MENA) region by delivering innovative financing across public and private markets with both conventional and Shariah-compliant offerings. As part of the No. 2 bank in the United Arab Emirates (UAE), backed by the government of Dubai (40.9% ownership), the bank’s franchise extends from its domestic UAE market to four major MENA financial centers and an additional nine global locations. This footprint results in mandates from regional governments, public investment funds, and corporate issuers across a broad range of industries. EmCap is a leading debt capital markets bank in the MENA region, with 2023 issuance of $39 billion across 72 deals, representing an increase of 180%, and in loans and credit facilities that involved 52 transactions for $38 billion in value, ranking among the top four in MENA league tables. Additionally, significant potential exists for EmCap to grow in IPOs, where the bank ranks first in the UAE and has participated in every IPO on the Dubai Financial Market (DFM) since 2021. As local governments continue to privatize state assets, EmCap has been instrumental in developing and implementing the blueprint for government IPOs, and is leveraging its e-IPO investment portal, which connects to the DFM, for better distribution and investor participation. —DS

With its extensive global franchise, J.P. Morgan continues to navigate the many challenges and risks of volatile global markets, earning the New York–based bank the distinction of Best Investment Bank in North America. Regionally, the bank retained the top spot in the US, thanks due to its deeply talented team of bankers. Under the helm of Daniel Pinto, CEO of the corporate and investment bank, Morgan reportedly hired 16,000 people in 2023—an increase of 5%. While there were cuts toward the end of the year, Pinto anticipates more hires in 2024 as dealmaking makes a comeback. To better serve its commercial clients with a comprehensive range of wholesale banking products and solutions, J.P. Morgan also expanded its commercial and investment bank to aggregate Morgan’s major wholesale businesses of global investment banking, corporate banking in addition to markets, securities services, and global payments. —DS

By providing customers with sophisticated financial strategies, our Best Investment Bank in Western Europe, Barclays, rode the yearly rebound on equities and debt to gain significant market share and garner a hefty $650 million in investment banking proceeds in Europe and the Middle East alone. The main secret behind the bank’s success has been its commitment to anticipating the most critical trends in investment banking, allowing it to participate in some of the year’s most important deals. The bank was the leading adviser on Heineken’s €3.7 billion stock and equity-linked deal with Mexican multinational beverage and retail company FEMSA for part of its holdings in the Dutch Group, including €1 billion in share buybacks by Heineken. The UK bank also closed the year as the leading M&A adviser for the retail sector, closing five deals worth a total of $14.6 billion. As a result, Barclays’ investment banking division steadily increased its total asset base to $1.45 billion.—TM

A total of 1,429 companies went public in 2023. That’s the lowest number of IPOs since 2019, a nearly 16% drop from 2022, and just over 40% of the amount launched in 2021. Per S&P Global, there was just under $25 billion offered globally in the fourth quarter of 2023 and just over $120.3 billion offered throughout the year.

Investment banks cashed in on IPOs mostly in the Asia-Pacific (APAC) region, according to Pricewaterhouse Coopers. APAC proceeds remained the highest for the second consecutive year, with 737 IPOs raising $73.1 billion—accounting for over half of the global IPO proceeds.

In terms of which country contributed the most to global IPO proceeds, China maintained its top rank from 2022 when it surpassed the US.

The EMEA (Europe, Middle East, and Africa) region accounted for 20% of the global IPO proceeds in 2023. Almost half of the money raised came from the Middle East, followed by Turkey and Germany contributing 14% and 10%, respectively.

Big banks started 2023 off with a bleak scenario when both Silicon Valley Bank and New York’s Signature Bank collapsed. Afterward, crypto lender Silvergate liquidated. And when First Republic nearly folded, a consortium of banks rescued it. UBS subsequently saved Credit Suisse from a similar fate. Fear quickly spread of a so-called contagion among troubled banks.

For the remainder of the year, companies desired growth but were extra cautious about where to source capital. Many companies opted to borrow from non-bank lenders, or firms that use private equity to issue debt rather than tap into customer deposits.

As a result, private debt and capital specialists siphoned business away from traditional bank lenders. This peeved JPMorgan Chase CEO Jamie Dimon who, in December, griped to Congress, about the trend, calling it “the next brewing crisis.” “Private market players,” he claimed, “act transactionally as counterparties, not partners.” 

Other observers arguedjust the opposite. “Private debt funds stepped up and acted more like a partner than just a lender,” private equity firm Acharya Capital Partners told Global Finance last year. Private debt funds, PitchBook reported, raised $95 billion during the first half of 2023, exceeding 2022’s first-half total, and were on pace to raise $200 billion by the end of the year.

Despite the lull in deal activity, with the contentious back-and-forth between investment banks and non-banks, competition remained fierce—especially within sectors that bore fruit. Law firm Morrison & Foerster determined that the technology industry accounted for 27% of M&A value. Cybersecurity and artificial intelligence (AI) were among the busiest subsectors when it comes to “strong dealmaking opportunities.”

Arm, the chip designer owned by SoftBank Group, was the year’s biggest IPO, priced at $51 per share, for a valuation of $54 billion. And two of the biggest price tags on the M&A front were Broadcom’s $69 billion acquisition of VMWare and Cisco’s purchase of Splunk for $28 billion. Both transactions took well over a year to close.  

Healthcare also performed well, not just in North America—where it was the third-highest sector by volume—but also in APAC, where it enjoyed its highest value level ever. Among the biggest closings that occurred include Pfizer’s $43 billion takeover of Seagen, a deal advised by Guggenheim Securities, as well as Merck’s $22 billion deal with Tokyo-based Daiichi Sankyo to develop cancer treatments.

Of the deals that involved private equity sponsors, volume dropped 33% while value plummeted 41% year-over-year. Still, Pitchbook points out a silver lining: 2023 was a strong year for private equity-led deals in which companies were taken private.

While activity didn’t reach the highs of 2021 and 2022, there was a steady stream of smaller deals and a handful of large buyouts. That’s because, in the face of rising interest rates, tightening credit markets, and other headwinds, sponsors adjusted their approaches to dealmaking.

“Private equity firms have been able to pivot,” he adds. Gone are the days where target valuations had to have nine-figure price tags. Anything less, “they would have laughed us out of the room,” Smale says. “Today, they have to be scrappier — trying moments create innovation and that’s exciting to witness.”

As for what bankers should expect for 2024? “There is a lot of optimism in 2024 with hopes that interest rates will drop,” Smale says. “Plus, as expectations around valuations continue to narrow between buyers and sellers, there’s hope the frequency of deal-making should continue.”

One notable trend in 2023 that will likely continue in the next few quarters was that nearly every major bank opted to slash overhead—especially in the US where roughly 20,000 investment bank employees were laid off since the start of 2023. The biggest drops occurred at Goldman Sachs and Wells Fargo, the latter of which cut its workforce by 50,000 in the last three years.

Until we get the full picture of what 2024 entails, let’s recognize what financial institutions accomplished over the previous 12 months. This year’s competition examined data from more than 100 countries and territories representing all the regions of the globe. However, we selected winners from only 66 countries and territories.

Read on for Global Finance’s 25th annual awards for Best Investment Banks.

Research and analysis were executed by Thomas Monteiro, John Njiraini, David Sanders and Lyndsey Zhang, who reviewed entries as well as other information. Global Finance editors reviewed their assessments and made the final selections. Corporate Finance Editor Anthony Noto served as lead editor. Monteiro, Sanders and Zhang wrote the following pages; their individual contributions are indicated by initials.

Global Finance editors and researchers, with input from a range of executives, investors and consultants worldwide, used a series of criteria to select the winners of these awards, including market share, number, size and complexity of deals, service and advice, structuring capabilities, distribution network, efforts to address market conditions, innovation, aftermarket performance of underwritings and market reputation. We use information provided by the banks, as well as material gathered from other sources, to score and select winners based on a proprietary algorithm. Deals announced or completed in 2023 were considered. In the review process, Global Finance considers the full spectrum of banks, from relatively small ones in frontier markets to global banks that lead the league tables.

Many winners submit, in support of their applications, information and perspectives that may not be publicly available. Banks that do not submit entries can still be selected as winners through Global Finance’s review process. However, experience shows that banks that submit entries, with detailed explanations of differentiation in services for corporate clients as compared with peers, achieve better results. Global Finance adheres to journalistic best practices for protecting the confidentiality of information.