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Emerging Market Loans

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  • BNP Paribas and VTB Capital are about to launch a $200m acquisition financing deal for London-listed oil producer Afren into syndication.
  • Hong Kong’s interbank market tracks its counterpart in the US, reflecting the peg of the local currency to the US dollar. But rising loans threaten a dislocation between Hibor and Libor rates — and banks should take a cautious approach to their lending for the rest of the year.
  • Hong Kong bankers have been waiting for the offshore renminbi market to become more than a sideshow for some time, and hoped an offshore renminbi interbank rate might do the trick. But this rate is still some time away, and even when it comes it might not be the panacea the market is hoping for.
  • Siberian Coal Energy Company (Suek) signed its $1.3 billion five year pre-export financing last week as the first Russian borrower to have braved the widening margins on offer for emerging market borrowers.
  • Indonesian palm oil company Bakrie Sumatera Plantations signed a $237.5m loan at the end of last week, finding enough money to repay a maturing $185m bond only a week before it falls due.
  • Banks have agreed to reprice Russo-German gas project Nord Stream’s €3.9bn project finance loan originally signed in 2010. The new margins on the deal will match those on the €2.5bn second phase financing that was signed in March this year.