Loan volume increases by 54 pc as Asia Pacific cos go shopping
Corporate loans by cos of Asia Pacific region has increased by 54% despite global slowdown to $262 bn to fund expansion and M&A plans.
By PTI |
NEW DELHI: Corporate loans by companies of Asia Pacific region has increased by a whopping 54 per cent, despite global slowdown, to 262 billion dollar (Rs 11.14 trillion) so far this year to fund expansion and M&A plans, a latest report says.
"The loan volumes in the Asia-Pacific region increased 54 per cent so far this year as compared to the 170 billion dollar in the same period in 2007, led by financing for the three billion dollar deal of Tata Motors for acquisition of iconic brands Jaguar and Land Rover," according to global M&A consultant Dealogic.
"Tata Motors' 3 billion dollar acquisition financing has been well received with six to seven banks already joined in syndication and several others awaiting credit approvals," said the report.
According to sources the consortium, which initially comprised eight banks mandated lead arrangers -- State Bank of India, Citigroup and JP Morgan, Standard Chartered, BNP Paribas, Tokyo Mitsubishi UFJ, Mizuho Financial Group and ING -- has received a 1 billion dollar commitment from 6-7 banks comprising both, domestic and foreign.
"The loan volumes in the Asia-Pacific region increased 54 per cent so far this year as compared to the 170 billion dollar in the same period in 2007, led by financing for the three billion dollar deal of Tata Motors for acquisition of iconic brands Jaguar and Land Rover," according to global M&A consultant Dealogic.
"Tata Motors' 3 billion dollar acquisition financing has been well received with six to seven banks already joined in syndication and several others awaiting credit approvals," said the report.
According to sources the consortium, which initially comprised eight banks mandated lead arrangers -- State Bank of India, Citigroup and JP Morgan, Standard Chartered, BNP Paribas, Tokyo Mitsubishi UFJ, Mizuho Financial Group and ING -- has received a 1 billion dollar commitment from 6-7 banks comprising both, domestic and foreign.
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However, the number of loan deals in the Asia-Pacific region have declined so far this year to 1,034 deals as against 1,184 deals announced in the corresponding period in 2007.
Further, in April last year, the London Stock Exchange listed Vedanta Resources had announced acquisition of 51 per cent stake in Sesa Goa from its Japanese parent Mitsui & Co Ltd for 981 million dollar (around Rs 4,070 crore) in cash.
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