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Emerging Market Loans

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  • Dutch commodities trading company Trafigura Beheer has signed an increased $875m syndicated loan, after drawing enough demand in syndication to push the deal beyond its $700m target.
  • Indonesia’s Bakrie & Brothers is in negotiations with its lenders about paying back a $1.345bn bridge loan, after shares backing the deal plummeted earlier this month. The company could turn to industry rivals for funding — and it looks likely to get some breathing room from its lender before being forced to pay back the cash.
  • Some European banks have been trying to reduce their Asian loan portfolios over the last few weeks, reacting to ballooning funding costs at home, according to bankers. But these sales have not always been aimed at the most likely buyers: one bond investor got a call last week trying to convert him to a new asset class.
  • FIG
    Sberbank may have to set its sights lower on its current deal than its preferred $2bn as the Russian bank’s relationship lenders remain cautious about committing large dollar tickets. The $1.2bn facility from 2008 that the new deal will replace was repaid on Monday, but the borrower has still not been able to set terms on a new facility after sending out a request for proposals last month.
  • A Sharia-compliant tranche may be added to the $2bn financing package for Saudi Arabian construction company Saudi Oger due to strong interest from Islamic accounts in the Middle East during the retail syndication phase.
  • Orascom Construction Industries (OCI), a producer of construction materials and fertiliser — and one of the first private Egyptian borrowers to approach international banks for financing since the country’s recent revolution — has completed loans of $2.2bn. The company has arranged term loans of $1.9bn for its wholly owned fertiliser subsidiaries with relationship banks to refinance the group’s existing loans, many of which are set to mature in 2013. It has also received a $200m investment package from the IFC.