Middle East and Africa: Best Bank for BRI-related Financing in the Region 2019
Supporting the Belt and Road Initiative globally is a strategic priority for HSBC – and the bank’s deep roots in Asia make it a natural partner for governments and firms looking to enhance their integration with the project.
Landmark deals for HSBC in the Middle East and Africa during the awards period include a $843 million Sinosure-covered financing facility for New Urban Communities Authority (NUCA), the government body charged with the construction of Egypt’s new administrative capital.
This marks the first time HSBC supported China State Construction Engineering Corporation (CSCEC), the engineering, procurement and construction (EPC) contractor for the project, for their exports; it is also the bank’s first participation in a Sinosure deal led by ICBC.
The HSBC team contributed to the documentation process, helping ICBC to negotiate and meet the requirements of international banks.
On the M&A side, HSBC’s standout deal in the region was the strategic acquisition by SDIC Mining Investment Corporation of a 28% stake in Jordan’s Arab Potash Company, in a deal worth $502 million.
HSBC acted as sole buyside financial adviser, providing advice on agricultural inputs and guidance through the cross-border auction process. The deal represented the first outbound investment by SDIC Mining and reflects the Chinese government’s core BRI strategies, as it will provide important supplies of potash reserves in strategic locations for expansion and end-use in Asian markets.
HSBC has an extensive on-the-ground presence in BRI countries across MEA, with dedicated China desks in the UAE, Israel, Saudi Arabia, South Africa and Mauritius.