ASEAN investment banking revenue rises as M&A and AI financing grow

Investment banking activity in the ASEAN region is experiencing significant growth, driven by a rise in mergers and acquisitions (M&A) and increased financing for artificial intelligence. Citigroup reported a 35 per cent year-on-year increase in its ASEAN investment banking revenue, having participated in nearly $20 billion worth of regional M&A deals so far this year. The bank also assisted regional clients in raising approximately $25 billion through various capital market channels.

Regional M&A volumes have risen by more than 30 per cent year-on-year to reach $140 billion, while combined equity and debt capital market issuances have exceeded $180 billion. Notable transactions include Citi advising KKR and Singtel on their $10.9 billion acquisition of ST Telemedia Global Data Centres.

In a broader market context, KKR is also seeing a record year for exits. While initial public offerings (IPOs) remain a standard route for returning capital, the firm is increasingly utilizing alternative methods such as sales to strategic partners and industry consolidation. This shift is partly due to companies, particularly in the AI sector, choosing to remain private for longer periods.