Syndications wane as club facilities dominate EM loans
Club facilities have come to dominate emerging market loans this year, Dealogic data shows. While syndicated facilities were as much as 73% of all EM loans between January 1 and September 2 two years ago, the ratio has reversed. In the same period this year, 51% of the sector’s volume came from club deals between borrowers and their relationship banks.
Last month Russian oil firm TNK-BP drove a hard bargain on its $2bn club deal with the margin on the three year unsecured facility set to come in at under 200bp. The club was reduced from 25-30 lenders to a group of around 15.
With banks asset-starved, loans
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