MEED announces annual project finance league tables

Despite HSBC's multiple mandates, the highest market share was jointly held by Goldman Sachs and Lehman Brothers, with three transactions each, totalling $1.176 billion - thanks to the $2.25 billion bond and simultaneous $970 million bank tranche to fund Qatar's RasGas III project.

This league table-based analysis, exclusive in MEED (Middle East Economic Digest, out March 26 in the GCC), reveals that while the traditional international banking heavyweights active in the region were dominant in 2005, other institutions came to the fore. One example was ABN Amro, not in the top 15 in 2004, which jumped to number 6 after deals in Oman, Qatar, Saudi Arabia and the UAE. Mizuho Financial Group leapt to number 5.

MEED's banking league tables examine the leading financial institutions in the region, ranking them in terms of activity in project financing deals during the year.

GCC financial advisory mandates multiplied in 2005, in line with record project finance volumes, particularly in the Saudi petrochemical sector. HSBC was the most active adviser, both in terms of number and value of transactions, notably through its strength in the Saudi market

Second place went to Royal Bank of Scotland, after advisory on projects worth in excess of $20 billion, while Societe Generale was in third, after consulting on the $2.8bn Qatargas 3 deal and through its longstanding Olefins II advisory in Kuwait.

The leading regional project finance provider was Gulf International Bank - for the fifth year running - with 13 deals valued at $914m. Arab Bank shot from nowhere to number 2 with 9 deals at $737m.

Dubai Islamic Bank was the only sharia-compliant bank to make it into the top 10 of regional MLAs, which reflects the declining appeal of long-tenor finance for Islamic financial institutions. This trend is set to continue in 2006 with the major non-Saudi sharia-compliant banks having essentially withdrawn from the market for the time being.

In 2005, deals worth almost $20bn were completed, up by nearly $5bn on 2004; Qatar led the way with borrowing in excess of $8bn. .

MEED estimates that project financing requirements in 2006 will hit $30bn; this will include financing worth $5.4bn for the RasGas II and III liquefied natural gas (LNG) projects in Qatar A $4bn debt package for Qatargas 4, a joint venture between Qatar Petroleum and the Royal Dutch / Shell Group is anticipated for around the middle of the year. However Saudi Arabia is set to be the focus of financing activity in 2006.

Current project activity can be ascertained by accessing MEED projects (www.meedprojects.com). The Middle East's leading online business opportunity tracker now provides information on more than 1,400 projects in the GCC, Iran and Iraq.