Goldman Reaps Huge Fee From Big Deal

Goldman Sachs earned the envy of its rivals last week as the investment bank secured a rare monopoly on the fees tied to a record stock offering by Asia's biggest oil refiner.

Reuters reports that the $3.1bn share sale by Sinopec, as China Petroleum & Chemical Corp is known, is the largest-ever equity deal to be handled by a single bank in Asia excluding Japan, according to Thomson Reuters data.

That means Goldman pocketed all underwriting and brokerage fees associated with the deal, at a time when banks are scrambling for roles in the region's equity capital market.

Investment banks knew Sinopec had been planning to raise funds for overseas acquisitions, but it was Goldman that managed to secure the transaction.

According to one person familiar with the matter, the combined sum that Goldman earned from the offering was around $40m. Such a payout would be much larger than the average fees tied to similar transactions in Asia.

Hit the link below to access the complete Reuters article:

Goldman reaps fee bonanza from record Sinopec deal

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