Equity Capital Markets Awards 2023: ECM Bank of the Year and Bank of the Year in Emerging Markets – HSBC
In a volatile year for equity capital markets one region was a beacon of relative stability in 2022. The Middle East became an engine of IPO activity and HSBC has been at the forefront of this buoyant market, leading the regional transaction pipeline.
Together with the firm’s steadfast support for European clients navigating an uncertain backdrop, this helped HSBC secure well-deserved wins for ECM Bank of the Year overall and as the best ECM Bank in emerging markets.
The firm’s platform in the Middle East is holistic, built through decades of hard work and dedication. HSBC’s presence in the region predates the creation of the United Arab Emirates, giving the firm a level of expertise and insight few competitors can rival.
Rapid development and solid economic growth in recent years has brought a varied portfolio of Middle East firms to market, drawing strong engagement and interest from investors. HSBC worked on many of the landmark deals, which put the bank in an excellent position from the outset.
“Governments had several mission-critical transactions that year and being sure that the banks leading the deals could deliver was paramount for them,” says Chris Laing, head of emerging markets ECM at HSBC. “We had an advantage going into 2022 because of what we did in 2021 – our reputation to deliver even in volatile conditions preceded us.”
We had an advantage going into 2022 because of what we did in 2021 – our reputation to deliver even in volatile conditions preceded us
Just as impressive as the sheer volume of deals that HSBC worked on is how many the bank led as global coordinator. HSBC’s list of achievements in 2022 includes acting as joint global coordinator on Dubai Electricity and Water Authority’s $6.1bn IPO, Borouge’s $2bn listing in Abu Dhabi and The Public Investment Fund of Saudi Arabia’s $610m secondary placing on the Saudi Exchange.
“We've got a lot of ECM experience on the ground that sets us apart,” says Andrew Robinson, head of EMEA ECM and global equity syndicate. This includes dedicated ECM teams on location in Dubai and Saudi Arabia, a feature that makes HSBC further stands out. “Our positioning and long-term commitment within this market means that we are at the forefront of deal activity and leading these global transactions at the highest level,” says Robinson.
The Middle East may have driven global IPO activity, but the bank also excelled in supporting European clients looking to complete capital raising programmes post-COVID.
Notable European transactions included a €2bn recapitalisation for the Italian oilfield services company Saipem, a €2.5bn deal for Air France-KLM and the UK’s largest IPO of the year in the form of oil producer Ithaca.
“We really did push heavily to support our clients through COVID and the aftermath,” says Edward Sankey, global head of ECM at HSBC. “While some of the other banks retreated to their domestic markets, we very much lent in to offer that support and our work with our clients in their time of need. Our work with several airlines globally and working for the likes of Air France-KLM and Lufthansa in Europe are a great example of that.”
HSBC’s success in supporting clients across Europe and the Middle East has continued into 2023. The firm became the sole international bank to lead ADNOC Gas to a successful $2.5bn deal that drew over $120bn of demand. A subsequent IPO for ADNOC’s logistics and shipping business was covered in a matter of minutes.
While some of the other banks retreated to their domestic markets, we very much lent in to offer that support and our work with our clients in their time of need.
“Just as with 2021 and 2022, this year is seeing us lead the market-shaping, landmark transactions,” says Laing. “But it's important to note that we don’t take any of this for granted. HSBC has worked hard to build a very strong pipeline for the rest of 2023.”
The firm’s reputation as a long-term partner bank, its global distribution capabilities and a tailored execution strategy have all helped create enduring relationships with borrowers. No matter what hurdles the market throws up, clients can rely on HSBC’s capabilities to help them navigate challenges.
“We know our clients inside and out and we’re always engaging with investors to think about new ways to deliver,” says Robinson. “Our clients know that when things are difficult and deals need to get done, they can rely on us.”