HK loans down 18%; Real estate leads way in Asia

Hong Kong syndicated loan volume down 18% Y-o-Y

• Sino-Ocean Land (Hong Kong) has sealed a $693 million facility through joint mandated lead arrangers Bank of China, Bank of East Asia, China Construction Bank, HSBC, Industrial & Commercial Bank of China, and Wing Lung Bank. Syndication saw China Merchants Bank, DBS, Hang Seng Bank, and Shanghai Pudong Development Bank join as arrangers. Proceeds are to refinance an existing facility signed in June 2017 and for working capital purposes.

• Hong Kong syndicated loan volume stands at $21.7 billion so far this year, down 18% from $26.6 billion borrowed from last YTD.

• Asia Pacific (ex Japan) loan volume has reached $195.1 billion in 2018 YTD, down 14% from the $226.9 billion borrowed in 2017 YTD.

The third-largest Oil & Gas sector deal signed in Malaysia in 2018 YTD

• Yinson Lavender has signed a $255 million facility with joint bookrunners and mandated lead arrangers ING Bank and Natixis. Syndication saw AmInvestment Bank,  Bank of China, DBJ, and Mizuho Bank join as mandated lead arrangers. Proceeds are to part finance the acquisition and conversion of a floating, production, storage and offloading (FPSO) vessel.

• This is the third-largest Oil & Gas sector deal signed in Malaysia in 2018 YTD, after PRPC Refinery & Cracker’s $7.0 billion fundraising signed in March 2018 and Hengyuan Refining’s $430 million facility signed in January 2018.

• Malaysia syndicated loan volume stands at $10.3 billion in 2018 YTD, more than double   the $4.8 billion borrowed in 2017 YTD and marking the second highest YTD level on record.

Real Estate leads the Asia-Pacific (ex Japan) syndicated loan volume this YTD

• Yuan Lih Construction has signed a NT$13.0 billion term loan with sole bookrunner and mandated lead arranger Mega International Commercial Bank. Syndication saw Bank SinoPac, CTBC Bank, Chang Hwa Commercial Bank, DBS, O-Bank, Taishin International Bank, Taiwan Business Bank, and Yuanta Commercial Bank join as participants. Proceeds are for property financing purposes. 

• In Taiwan, syndicated loan volume stands at $13.5 billion via 51 deals in 2018 YTD, more than double the $6.3 billion borrowed in the same period of 2017.

• Real Estate sector leads the Asia-Pacific (ex Japan) syndicated loan market with $37.4 billion signed in 2018 YTD, accounting for 19% of the region’s total loan volume.