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Emerging Market Loans

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  • Loans bankers were shocked this week after China Petroleum & Chemical Corp (Sinopec) announced it wanted unexpectedly low margins for a HK$3.8bn ($488m) loan that bankers had already pitched for.
  • AUSTRALASIA Crown loan oversubscribed, increased to A$750m facility
  • Australian borrowers are turning to Asia in their droves as they seek to build a more diversified funding base. Qantas became the latest company to announce an Asia-focused syndication this week, after OneSteel met lenders in the region.
  • Emerging market loans bankers’ hopes for a jumbo deal backing UAE telecoms company Etisalat’s acquisition of a 46% stake in Kuwaiti peer Zain have taken another blow. The deal, which was set to be funded by a $6bn bridge loan and $6bn of three and five year loans, is in doubt after the main seller said in a statement to the Kuwaiti bourse: “We declare an end to our commitment.”
  • Australian steel manufacturer OneSteel has launched a $500m loan into syndication. The borrower is targeting a limited number of relationship banks and institutions that it wants to work with in Asia.
  • India’s Reliance Communications (RComm) has picked up its first commitment to a $255m loan that it launched at the end of January. Bankers are optimistic that more lenders will join this week, despite competition for commitments from rival Tata Communications.