Syndicated loans in Asia, outside of Japan and Australasia, fell to their lowest level in seven years in 2020 due to moderate supply flows due to the disruption to global economic activity caused by the Covid-19 pandemic. Figures provided by Refinitiv, an LSEG company, show volume fell 7.4% to US $ 374.69 billion from US $ 404.79 billion in 2019 – the lowest since 2013, as volume amounted to 365.86 billion US dollars.
But despite the downward trend, several banks remain focused, launching loan syndication transactions amid coronavirus-induced market volatility. As many lenders curb their appetites, they have continued to underwrite and bring their clients into the loan market for their financing needs – thus earning nomination for the Triple A Best Loan Adviser award.
bank of china (BoC) leads the nominees with its syndicated fundraising franchise spanning a wide range of activities. Refinitiv figures show that in 2020 it accounted for 16.7% of the syndicated loan market in Asia, outside of Japan and Australasia, up from 13.2% of the market share the year before. And in the year that lending volume was declining, BoC, as arranger at work, recorded a larger volume of $ 62.47 billion, compared to $ 53.30 billion in 2019. The bank was a primary manager of the 22 billion yuan syndicated loan for Visionex and a principal arranger and bookrunner in the US $ 1.2 billion term loan facility for GLP China Holdings.
Citi provides a range of financing in a diverse range of industries and regions, providing a US $ 1.1 billion bridge facility to Yageo Corporation of Taiwan to acquire US-listed capacitor technology company KEMET Corporation, in which she acted as the sole lead arranger and bookrunner. He was a co-coordinator, a commissioned lead arranger and bookrunner for a US $ 1.2 billion term and revolving credit facilities for Xiaomi Corporation of China. Citi coordinated the overall execution of the financing of the Aleris acquisition by Novelis for US $ 2.275 billion – the largest outgoing acquisition of the Aditya Birla group since 2008 and the largest transaction in US dollars over the past six years.
Another candidate is Swiss credit, which is strong in M&A related financing and has brought new borrowers into the market on one basis. Early borrowers include Hope Education Group ($ 250 million senior term loan and revolving credit facility), Chindata Group ($ 225 million term loan), Envision Energy (Hong Kong) ($ 150 million term loan USD) and Eddingpharm Group (USD 220 million) senior term loan). Credit Suisse was also involved in sovereign financing and frontier markets in 2020, negotiating deals for the Ministry of Finance of the Lao People’s Democratic Republic (207 million euros) and the Ministry of Finance of the Government of Pakistan. ($ 115 million).
DBS, as a regional bank, strikes above its weight among the nominees. He was the sole mandated lead arranger and bookrunner / underwriter of the Singapore $ 4 billion bridging loan facility for Singapore Airlines to support the company at the height of the Covid-19 pandemic. He was a principal arranger and mandated bookrunner under the US $ 331 million bridge loan facility for Centratama of Indonesia to support the acquisition of telecommunications towers. But what sets DBS apart is its involvement in sustainable loan financing, which resonated in 2020. According to Refinitiv, the total volume of green loans issued in Asia, outside of Japan and Australasia, increased by 41.2% to $ 12.70 billion in 2020, compared with $ 8.99 billion a year earlier. DBS topped the rankings with $ 1.985 billion, more than double the volume of Standard Chartered, another candidate for the Loan Advisor Award, which totaled $ 702.7 million.
HSBC has a large geographic footprint in the region and has cross-border capabilities in organizing loan syndication transactions. It brings early borrowers to the loan market and it is a leading lending house for mid cap borrowers. The bank was an appointed lead coordinator and arranger and bookrunner in the US $ 1.29 billion term loan facility for Lufax Holding, which was executed in a narrow window amid the Covid outbreak -19 in March 2020. She was the only mandated coordinator and chief arranger. and US $ 1.1 billion term bookrunner and revolving credit facilities for Yanlord Land Group. Another major deal for HSBC was the Hong Kong $ 35 billion Equator-compliant term and revolving credit facilities for the Hong Kong Airport Authority, in which it also acted as coordinator and agent. principal arranger and bookrunner.
Standard charter was another major player in the loan syndication market in the region amid the pandemic. He helped organize the US $ 1.295 billion loan for Trip.com when China imposed a lockdown. In Indonesia, he was involved in the $ 1 billion Bank Rakyat Indonesia loan, which attracted 23 banks, and the senior two-currency facility ($ 90 million and € 593 million) of PT Trans Retail Indonesia to help it refinance its existing debt. . In India, Standard Chartered was a senior arranger and mandated bookrunner, as well as underwriter of the country’s largest leveraged buyout loan of US $ 600 million for Baring Private Equity Asia’s buyout of IT solutions provider Hexaware Technologies. Its Green Loan title included a US $ 250 million sustainability loan for Olam International.
Sumitomo Mitsui Banking Corporation (SMBC) also maintains a strong presence in the loan syndication market and relies on the yen loan market to provide borrowers with access to an alternative liquidity pool. One of the agreements that defined its loan franchise in 2020 was the equivalent US $ 2.05 billion term loan facility to PT Indofood CBP Sukses Makmur to finance the acquisition of Pinehill Company. Acting as the sole coordinating lead arranger and bookrunner of the transaction, he structured the facility in US dollars and yen, resulting in savings from lower yen rates. SMBC has also brought Indian borrowers into the yen lending market, including NTPC, Mahindra & Mahindra Financial Services, and Indian Railway Finance Corporation.
Who Deserves To Win The Best Loan Advisor Award?
Following the tradition, The trump will announce the winners of these categories at an Oscar-style awards ceremony, with the official announcement happening live on March 18, 2021 at 5 p.m. Hong Kong time.