KUALA LUMPUR: Citi expects a record year for its Asean investment banking business in 2026, driven by increased artificial intelligence (AI)-related financing and mergers and acquisitions (M&A) activity across the region.
In a statement, the bank said Asean M&A volumes rose more than 30% year-on-year (y-o-y) to US$140bil year-to-date, while equity and debt capital market issuances increased by a similar margin to over US$180bil, citing Dealogic data.
Citi, which will have operated across some Asean markets for 125 years next year, has been very active amid the pick-up in banking activity.
Citi's Asean investment banking revenue increased 35% y-o-y, with the bank involved in nearly US$20bil worth of M&A transactions so far this year.
It also helped Asean clients raise close to US$25bil through international bond issuances, initial public offerings (IPOs), convertible bonds and follow-on offerings.
Citi said it expects activity to remain strong in the final quarter of 2026, with several debt and equity capital market transactions in the pipeline.
The bank also anticipates continued inbound and outbound M&A activity across the technology, consumer and healthcare sectors.
Citi head of investment banking for Asean Matthew Nimtz said the region remained a key market for the bank globally, with regional companies increasingly tapping capital markets to finance their expansion.
“We also are seeing associated M&A as local corporates go global and increasingly lean into Citi's leading global network for key strategic financings and advisory work," he said.
In Malaysia, Citi supported Maybank's US$700mil and US$600mil investment-grade bond issuances.
The bank also acted as global coordinator, ratings adviser and joint bookrunner for Yinson
's US$1.458bil senior secured notes issuance for the Agogo floating production, storage and offloading (FPSO) vessel.
Elsewhere in the region, Citi advised KKR and Singtel on their US$10.9bil acquisition of STT GDC and supported equity and debt financing related to Indosat's establishment of Zankore in Indonesia.
The bank also handled equity transactions involving UI Boustead REIT, CapitaLand Integrated Commercial Trust and CapitaLand India Trust in Singapore.
Citi said it has participated in nearly 30 transactions involving Asean issuers this year.
The bank has operated in Malaysia since 1959 and currently employs almost 4,000 people across its local operations.
