APAC Chart of the Week: Number of lenders involved in APAC loans drops 16.1% YoY in 4M20 as COVID-19 hits deals
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The number of lenders involved in the Asia Pacific (ex-Japan) syndicated and club loans decreased16.1% YoY in the first four months of this year with several deals put on hold or general syndications canceled due to the COVID-19 crisis.
From January to April, 209 lenders provided USD92.9bn loans, compared with 249 for a total volume of USD 119.5bn in the same period of 2019. The 4M20 figures were the lowest since 4M16 when 192 lenders provided USD 91.1bn loans.
Among the deals affected by the outbreak, the general syndication of Udenna Corp’s USD400m reserve-based loan to partially fund the Philippineconglomerate’s 45% stake acquisition in a gas field from Chevron has been put on hold. Also, discussions of an up to USD 1.6bn loan for a take-private deal of US-listed China Biologic ProductsHoldings have been delayed.
In India, general syndication of loans for Adani Electricity Mumbai (USD400m), LICHousing Finance (USD 200m), and ONGC Videsh (USD 1bn) has been canceled. Of these, the Adani Electricity deal closed as a club, while the other two concluded at the senior-syndication level.