HONG KONG, June 30 (Reuters) - Credit is flowing through
narrow channels in Asia, where funding is mainly dependent on
relationships with banks that are wary about making loans.
Apart from massive loan growth in China, spurred by
Beijing's directives to support the economy, credit in other
parts of Asia has staged a small rebound since Lehman Brothers
blew up and sparked heavy demand for short-term dollar-based
funding.
For full story [ID:nHKG252390]
Below are syndicated loan volumes in non-Japan Asia, as
well as equity and bond issuance data for the entire region:
Syndicated loan volumes have stabilised after dropping off
sharply in the fourth quarter of 2008. However, activity is
still weak. No country in emerging Asia, except for China, has
seen credit activity pick up since Lehman Brothers collapsed in
September 2008.
Date Volume (US$ mln) Number of deals
May-08 20,685 78
Jun-08 22,340 91
Jul-08 24,480 88
Aug-08 16,617 73
Sep-08 23,594 81
Oct-08 13,397 56
Nov-08 8,722 42
Dec-08 14,653 35
Jan-09 3,246 27
Feb-09 14,604 25
Mar-09 17,431 47
Apr-09 8,682 40
May-09 10,419 31
Jun-09 3,794 27*
* June figures are as of June 24.
Banks remain a key source of financing for Asian companies.
Thirty percent of Asian firms said their access to bank
revolving credit lines has improved in the last three months,
with only 18 percent saying access had become more difficult, a
Greenwich Associates survey shows.
Below is the league table for the top 10 mandated arrangers
of syndicated loans in Asia Pacific ex-Japan:
1/1/2009 to 24/6/2009 Mandated
Proceeds Mkt No. YoY Change
Arranger (US$ mln) Share Issues Mkt share
State Bank of India 13,242.1 23.7 22 18.6
ANZ Bank 3,501.5 6.3 36 0.2
DBS Group 2,001.9 3.6 28 1.3
Westpac Bank 1,979.7 3.5 25 -1.6
CBA 1,970.8 3.5 22 0.2
NAB 1,630.6 2.9 14 -1.3
Credit Suisse 1,500.0 2.7 1 1.4
IDBI Bank 1,480.1 2.7 4 1.8
MUFG 1,476.9 2.6 18 0.9
StandChart 1,436.7 2.6 21 -0.2
The bond market has seen increased activity in the year to
early June. Volumes were up 27.3 percent, with technology, and
government-related companies tapping fixed-income markets the
most. Local currency bonds were by and far the market of
choice.
Below are data for both hard currency and local currency
bonds in Asia.
1/1/2009 - 4/6/2009
Issuer/Borrower Proceeds YoY pct Mkt Share Number
of Industry (US$ Mln) change
Issues Financials 102,062.6 -21.3 35.1
547 Government/Agencies 77,449.7 154.8 26.6
221 Industrials 37,842.0 122.6 13.0
181 Energy and Power 25,925.0 23.4 8.9
115 Materials 17,665.5 87.5 6.1
75 High Technology 8,490.0 253.7
2.9 28 Telecommunications 6,510.2 -2.7
2.2 22 Consumer Staples 5,017.0 17.8
1.7 28 Real Estate 3,999.1 45.2
1.4 43 Consumer Products 3,757.4 125.4
1.3 23 Retail 846.5 11.4
0.3 8 Media/Entertainment 621.1 2.1
0.2 14 Healthcare 568.8 -64.7
0.2 5 Industry Total 290,754.9
100.0 1,310
Equity market issuance has fallen by 18 percent in the year
to early June. Many companies have either turned to other means
of funding or cut capital spending, thereby reducing their need
to tap stock markets. Banks were the exception. They more than
doubled issuance of new shares, with investors eager to buy
heavily discounted stock.
1/1/2009 -
4/6/2009 Issuer/Borrower Proceeds YoY pct Mkt Share
Number of Industry (US$ Mln) change
Issues Financials 23,327.2 116.5 37.7
52 Real Estate 11,480.9 48.1 18.6
35 High Technology 6,654.6 45.2 10.8
71 Materials 6,508.7 -58.4 10.5
154 Industrials 6,150.6 -50.6 9.9
58 Energy and Power 2,325.4 -78.7 3.8
37 Media/Entertainment 1,603.3 213.9 2.6
24 Consumer Staples 1,450.4 -72.1 2.3
33 Consumer Products 980.6 -25.0 1.6
25 Telecommunications 573.6 -59.4 0.9
12 Healthcare 422.4 -71.8 0.7
30 Retail 375.6 -87.5 0.6
13 Government/Agencies - -
- Industry Total 61,853.2 100.0
544
(Sources: Reuters Basis Point, Reuters News, Thomson
Reuters)
(Reporting by Kevin Plumberg and Michael Flaherty; Editing by
Neil Fullick)
