Lever­aged Loan Mar­ket Set to Boom in Asia

The Economic Times - - Money & Banking -

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.

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