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Big deal joins light supply in January
Bankers say deals are still being launched and believe international rivalry can be negotiated
Banks accept some deals will bypass them — others they can intermediate
Sectors shape up as main sources of corporate syndicated lending demand amid renewed geopolitical uncertainty
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Corporate debt bankers say that the comprehensive restructuring and refinancing package agreed between baggage handler Swissport and its creditors is “just the beginning”, with a growing number of companies expected to restructure their debts as the Covid-19 pandemic drags on.
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Indonesian company Sarana Multi Infrastruktur (SMI) has increased the size of its loan to $700m after seeing strong traction from banks during syndication.
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Singaporean commodities company Mercuria has returned to the offshore loan market for its annual foray.
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Indonesian oil and natural gas company Pertamina has shortlisted six banks for a bridge loan of as much as $3bn to support its acquisition of energy assets.
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Market observers believe that investors in open-ended debt funds need to be disincentivised more than they are at present from scrambling to liquidate their holdings in a market downturn.
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Once Schuldschein market darlings, auto parts suppliers are beginning to look to lenders like they may be in distress. Some fear a wave of credit restructurings on the horizon, when the market's lean documentation standards are likely to be tested.