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Emerging Market Loans

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  • FIG
    Concerns about the effect of bank deleveraging on lending in emerging Europe have prompted the second incarnation of the Vienna Initiative to take a step forward. However, some observers have branded the efforts a “damp squib” for not matching up to what the first initiative provided.
  • Croatia’s only integrated oil company, INA, has sent lenders a request for proposals (RFP) for a new loan. But bank deleveraging in emerging Europe could hinder the process, bankers said.
  • India’s Reliance Communications has secured a $1.18bn loan from a trio of state-owned Chinese banks, finding the money to pay off a huge amount of convertible bonds that mature in under two months.
  • Japanese lenders could become a more important part of Asia’s loan market this year, stepping in to make up for a reduction in lending from European banks, said senior loans officials. This is likely to be most prominent in the project finance market, where French banks in particular have long been important players.
  • Rusal’s lending group had to adopt a “pragmatic stance” after heavy negotiations saw a covenant holiday option added to the aluminium producer’s October 2011 $4.75bn pre-export finance package, according to a banker.
  • Hungarian construction company TriGranit has raised €190m from five banks as lending in eastern Europe comes under the regulatory spotlight.