Construction, property sectors see strong loan activity

Longfor Properties, Ping An Leasing Hong Kong Holdings and JK Cement feature in Dealogic's roundup of loans activity in Asia for January 26 to February 1.

The second largest syndicated loan signed in Asia Pacific (ex Japan) in 2018 YTD

  • Longfor Properties has signed a HK$10.2 billion facility through joint mandated lead arrangers Bank of China, Bank of East Asia, China Construction Bank, China Minsheng Banking Corp, DBS Bank, Hang Seng Bank, HSBC, and Industrial & Commercial Bank of China on a club basis. Proceeds are for general corporate purposes.
  • This is the second-largest deal signed in Asia Pacific (ex Japan) so far this year, after Wuhan China Star Optoelectronics Technology’s $2.2 billion facility signed in January 2018.
  • Asia Pacific (ex Japan) syndicated loan volume stands at $7.5 billion via 17 deals so far this year. Last year, the total Asia Pacific (ex Japan) syndicated loan volume reached $507.3 billion via 1,519 deals.

China offshore loan volume at record high in 2017

  • Ping An Leasing Hong Kong Holdings has signed a $340 million facility through sole bookrunner and mandated lead arranger Deutsche Bank. Syndication saw Bank of China, Bank of Communications, and First Abu Dhabi Bank join as mandated lead arrangers, while China Everbright Bank, East West Bank, Mega International Commercial Bank, Tai Fung Bank, Taiwan Business Bank, and Taiwan Cooperative Bank came in as arrangers. Proceeds are to finance the acquisition of a 25% stake in subsidiaries of Ping An Financial Leasing.
  • This is the second-largest China offshore facility signed in 2018 YTD, after Longfor Properties’ $1.3 billion fundraising signed in January 2018.
  • In 2017, China offshore loans volume stood at $60.0 billion via 96 deals, increasing 21% from the $49.7 billion borrowed in 2016 and marking the highest full-year level on record.

The second largest deal signed in India in 2018 YTD

  • JK Cement has signed an INR 11.7 billion facility through sole bookrunner and mandated lead arranger State Bank of India. Syndication saw IDBI Bank join as mandated lead arranger, while Axis Bank, Allahabad Bank, Andhra Bank, Canara Bank, Dena Bank, Export-Import Bank of India, Indian Bank, Jammu & Kashmir Bank, Oriental Bank of Commerce, Union Bank of India, and United Bank of India came in as participants. Proceeds are for capital expenditure purposes.
  • This is the second-largest deal signed in India so far this year, after Reliance Cement’s $266 million facility signed in January 2018.
  • Construction/ Building was the third largest sector for India syndicated loan market in 2017. The volume stood at $7.0 billion via 48 deals in 2017, increasing 16% from $6.0 billion borrowed in 2016.
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