Loans week July 29-August 4

Dealogic's weekly roundup of loans activity in Asia.

China syndicated loan volume at YTD record high

  • CCCC Foshan Investment & Development has signed a RMB 11.8 billion facility through joint mandated lead arrangers Bank of Communications, China CITIC Bank, China Development Bank, China Everbright Bank, Ping An Bank and Postal Savings Bank of China on a club basis. Proceeds are to support the construction of Foshan Metro Line 2.
  • Construction/Building is the third largest sector for China loan volume, with $11.9 billion signed so far this year, almost triple the $4.4 billion borrowed in 2015 YTD.
  • China syndicated loan volume stands at $83.9 billion via 162 deals this YTD, marking the highest YTD level on record.

Transportation leads Asia Pacific (ex Japan) loan sector ranking

  • Changzhou Metro has secured an RMB 11.5 billion facility. The loan is split into a RMB 1.3 billion bilateral loan and a RMB 10.2 billion syndicated facility. The latter portion was concluded through sole mandated lead arranger China Development Bank. Syndication saw Agricultural Bank of China, Bank of Communications and China Construction Bank join as arrangers, while Bank of China, Bank of Jiangsu, China Everbright Bank and Postal Savings Bank of China came in as participants. Proceeds are to support the construction of Metro Line 2 in Changzhou, Jiangsu.
  • Transportation sector is the leading sector for Asia Pacific (ex Japan) syndicated loan market with $31.9 billion in 2016 YTD, down 39% from the $52.4 billion borrowed in 2015 YTD.
  • Asia Pacific (ex Japan) syndicated loan volume totals $234.3 billion so far this year, the lowest YTD level since 2012 ($213.9 billion).

The second largest deal signed in Indonesia in 2016 YTD

  •  PT Agincourt Resources has signed a $425 million term loan through jointed bookrunners and mandated lead arrangers HSBC, Maybank, PT Bank Mandiri (Persero) and Sumitomo Mitsui Banking Corp. Syndication saw KEB Hana Bank join in as mandated lead arranger while China CITIC Bank International, Mega International Commercial Bank, PT Bank Rakyat Indonesia (Persero) and Taishin International Bank came in as arrangers. Proceeds are to finance the acquisition of 95% stake in a gold mine in North Sumatera, Indonesia.
  •  This is the second largest deal signed in Indonesia in 2016 YTD, behind PT Bhimasena Power Indonesia’s $1.4 billion fundraising in June 2016.
  • Southeast Asia syndicated loan volume stands at $39.5 billion so far this year, down 14% from $46.1 billion borrowed in the same 2015 period and the lowest YTD level since 2010 ($29.8 billion).
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