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Emerging Market Loans

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  • FIG
    Market nervousness surrounding the Italian sovereign and plummeting share prices for UniCredit, its largest bank, have taken a toll on the bank’s Russian subsidiary which has a Eu300m three year loan in syndication.
  • Noble Group raised $3.2bn from a huge group of lenders this week, underlining the resilience of loan markets to external shocks by getting almost $1bn more than it originally planned. Bankers will now turn to a slew of other commodities companies hoping to tap the market.
  • Asia’s bond and equity markets may be in poor shape, but the loan market still offers huge funding for the right company. Noble Group underlined that point this week, raising $3.2bn from a deal that was almost $1bn larger than the company originally planned.
  • Liquidity in leveraged loans has become scarce. A temporary solution in the form of prepayments to CLOs may be only months away, but a timely reminder has arrived that leveraged loans are only living thanks to a diet of existing liquidity from the pre-crisis years. Market participants should not panic, but complacency could be fatal.
  • Romanian power supplier SC Hidroelectrica has signed a Eu110m ‘A/B’ loan with the European Bank for Reconstruction and Development (EBRD) and commercial lenders.
  • The second round of Turkish bank loan refinancings has kicked off in earnest, with Isbank sending invitations to its relationship banks to refinance the one year portion of a one and two year loan that it signed in September last year.