Loans week September 3-10

A roundup of the latest syndicated loan market news.

Hong Kong syndicated loan volume on pace to be the highest YTD level on record

HKR International has signed a HK$8 billion five year team loan through joint bookrunners and mandated lead arrangers Bank of China, Bank of Tokyo-Mitsubishi UFJ, Hang Seng Bank and Standard Chartered Bank. Syndication saw Bank of Communications, China Construction Bank, Chiyu Banking, First Commercial Bank, Hua Nan Commercial Bank, Industrial & Commercial Bank of China, Mega International Commercial Bank, Mizuho Bank, Nanyang Commercial Bank, OCBC, OCBC Wing Hang Bank, Shanghai Commercial & Savings Bank, Shanghai Commercial Bank, Shanghai Pudong Development Bank and Sumitomo Mitsui Financial Group join in as participants. Proceeds are to refinancing an existing indebtedness signed on Sept 2012.

HK$-denominated syndicated loan volume has reached $30.9 billion in 2015 YTD, up 2% year-on-year and the highest YTD total on record.

US$-denominated loans account for 32% of Asia Pacific (ex Japan) loan market with $87.3bn in 2015 YTD, down 5 percentage points from 2014 YTD (37% share with $87.3 billion).

Construction/Building is the second largest sector in India 2015 YTD

Reliance Cement has obtained a Rs17.3 billion term loan through sole bookrunner and mandated lead arranger Axis Bank. Syndication saw Corporation Bank, State Bank of Bikaner & Jaipur, State Bank of Hyderabad, Syndicate Bank, Union Bank of India and Vijaya Bank join in as lenders. Proceeds are to repay existing debt.

India Construction/Building loan volume dropped to $3.8 billion in 2015 YTD from $10.4 billion reached in the same 2014 period. This is in line with the decline in overall India loan volume which is also down 57% year-on-year to $26.2 billion in 2015 YTD.

*Refinancing tops use of proceeds in APAC (ex Japan) 2015 YTD

Charoen Pokphand Group has completed a Bt15 billion seven-year financing through joint bookrunners and mandated lead arrangers Bangkok Bank, Krung Thai Bank and Siam Commercial Bank on a club basis. Proceeds are to repay existing indebtedness and for working capital purposes.

Refinancing tops use of proceeds ranking for Asia Pacific (ex Japan) syndicated loans in 2015 YTD with $90.8 billion, down 38% year-on-year.

Asia Pacific (ex Japan) syndicated loan volume stands at $274.7 billion via 746 deals in 2015 YTD, down 30% from the $392.4 billion lent in the same 2014 period.

*Refinancing includes Refinancing and Repayment of Debt

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