Leveraged Loan Market Set to Boom in Asia
Leveraged buyout loans in Asia are set to increase as the region’s companies mature and seek to grow by acquisition rather than organically, according to Cred Agricole. Merger and acquisition activity in the Asia-Pacific region has increased by 67% this year to $312.4 billion, led by deals including Temasek Holdings’ part purchase of Olam International and Oversea-Chinese Banking’s $5 billion takeover of Hong Kong’s Wing Hang Bank. The number of leveraged finance transactions completed in emerging Asia in the first three months of the year rose by 28% to 169 versus the same period of 2013, data from the Emerging Markets Private Equity Association show. “In Asia, the leveraged-loan market will emerge quite significantly over the next few years,” said Olivier Carcy, the Geneva-based global head of PE at Credit Agricole’ private banking unit. Some $4 billion of fresh capital was raised in emerging Asia in Q1 led by Affinity Equity Partners’fourth buyout fund.