Quotes: MENA   Enter Symbol: NewsLetter: Search: advanced

Commercial Bank International sees strong growth in syndication market  Join our daily free Newsletter

MENAFN - Khaleej Times - 16/01/2014
No. of Ratings : 0
Add to Mixx!

(MENAFN - Khaleej Times) The syndicated loan market is back. We're enjoying the busiest time for new deals in the region since 2008, as a real estate and economic revival finally takes hold. The question is, is it here to stay?

During the crisis, Middle East borrowers had found it challenging to raise money from the loan markets as quite a few MNC banks had become inward looking and withdrawn from the local markets here on account of losses in their domestic markets. The funding costs for local and regional banks had moved considerably north as it became more and more expensive to borrow from the loan and capital markets

Middle East syndicated lending has bounced back from a three-year hibernation as companies seek to take advantage of the current benign environment. The rush is also largely on account of the positive takeaways from the crisis. The successful restructurings in the region on the back of ample support from the government, and hardly any haircuts have ensured that MNC banks are back with the old aggression

This year alone we have seen major new deals from Investment Corporation of Dubai, MAF Group, Atlantis, Aabar Investments, Mubadala, Emirates and Air Arabia. At the same time, major borrowers like Dubai Duty Free, Emaar and JAFZ have returned to the market to renegotiate margins, taking advantage of banks awash with cash. The annual Loan and Bond conference has always drawn interest, however the one held this year in May has been the best attended so far, both from banks as well as corporates, the optimism and enthusiasm in the air was seen to be believed.

Speaking exclusively to Khaleej Times, chief executive of Commercial Bank International (CBI) Kris Babicci said the surge in the loan markets is also helped by the local and regional banks' desire to aggressively grow their asset book on the back of the excess liquidity in the market

"It has been interesting to see that the bookrunners in most of the recent syndicated transactions have a much higher final hold than other large ticket participants, which clearly suggests the current strong appetite that banks possess. This fact is furtr demonstrated by either the sudden disappearance of GCC names from the MNC banks' axe sheet or a considerable fall in the earlier offered discounts.

The loan market in the region is as healthy as ever, providing a measure of just how far we as a region have come. As the global economy continues to stumble from one crisis to the next, GCC countries have been quietly rebuilding their economies after the crisis. In 2009 syndicated loans for all of GCC totaled 37 billion. Last year, "we've already seen deals totaling over 50 billion"

"We have been well prepared for this opportunity by way of starting a Syndication and Capital Markets desk in 2012, expanding our team, leveraging on our relationship with Qatar National Bank (the strongest bank in the world) and actively pursuing opportunities in markets where Qatar National Bank has a presence. In 2013, our planning and efforts have borne fruit, as we were mandated as Co-Leads in three capital market issuances, appointed Mandated Lead Arrangers in eight transactions and have committed more than 530 million in the primary syndicated transactions.

But is this sustainable? Well, let's look at the drivers. Firstly, the real estate market, which in turn, is influenced by macro economic trends. The GCC economies have experienced consistent growth in the last three years, the key drivers being oil, trade, logistics, hospitality and retail. The general belief is that the upward trend is expected to continue on the back of the consistently improving fundamentals which in turn leads to improved confidence

"Of course, we found out the hard way that the GCC is not immune to global strife. Another global crisis, an escalation in Syria, or a real estate crash could always derail the economy and hence the loan market. Lenders and borrowers both have a duty to act responsibly and conduct transactions that will provide stability and a sense of security for all stakeholders.

The syndicated loan market is enjoying the healthiest period in years, underpinned by solid fundamentals. The immediate future is bright, it's now up to all of us to ensure the trend is here to stay


Khaleej Times

  MENA News Headlines
 Nov 24 2015 - China home-price recovery slows in OctoberGulf Times
(MENAFN - Gulf Times) China's home-price recovery slowed in October, as a supply glut in less-prosperous cities challenges the authorities' efforts to revive the residential market with interest-rate ...

 Nov 24 2015 - Devaluation may force China to pay premium on Dim Sum debtGulf Times
(MENAFN - Gulf Times) China is set to pay more to sell sovereign bonds in Hong Kong than in the onshore market for the first time, as investors brace for the possibility of another yuan ...

 Nov 24 2015 - PetroChina, CNPC plan pipeline, refinery salesGulf Times
(MENAFN - Gulf Times) PetroChina Co and its state-owned parent are planning to sell assets before the end of the year that may include stakes in pipelines and refineries as the country's biggest oil ...

 Nov 24 2015 - Saudi Arabia ready to work with others to stabilise crude marketGulf Times
(MENAFN - Gulf Times) Saudi Arabia's cabinet said yesterday it was ready to cooperate with Opec and non-Opec countries to achieve market stability, days before Opec meets to review its year-long ...

 Nov 24 2015 - Issa Abu Issa on TAKREEM 2015 juryGulf Times
(MENAFN - Gulf Times) Prominent Qatari entrepreneur and Salam International chairman and CEO, Issa Abdul Salam Abu Issa was on the eminent panel of jury of 'TAKREEM 2015.' Established in 2010, ...

 Nov 24 2015 - Joyalukkas raises AED500mn to 'refinance and reduce borrowing costs'Gulf Times
(MENAFN - Gulf TimesDubai-headquartered leading jewellery retail chain Joyalukkas has raised a total amount of AED500mn through multiple banking arrangements. Part of this is a $80mn term loan with a ...

 Nov 24 2015 - Qatar Airways named the Best Mideast Airline serving ChinaGulf Times
(MENAFN - Gulf Times) Qatar Airways has been named the Best Middle East Airline serving China, at the 2015 Business Traveller China Awards, picking up the award for the fourth consecutive year."To be ...

 Nov 24 2015 - Qatar banks' loan-deposit ratio hits 115% in October QCB targets 100%Gulf Times
(MENAFN - Gulf Times) Qatar's banking sector witnessed loan-deposit ratio increase to 115% in October against 112% in the previous month; even as the Qatar Central Bank is aiming to limit the ratio ...

 Nov 24 2015 - Qatar brokers reconciliation deal between Libyan tribesGulf Times
(MENAFN - Gulf Times) The Libyan tribes of the Tuareg and Tebu yesterday signed a comprehensive reconciliation agreement under the auspices of HH the Emir Sheikh Tamim bin Hamad al-Thani to put an ...

 Nov 24 2015 - Suicide vest found on Paris street: Did Belgian suspect Abdeslam get cold feetAsia Times
(MENAFN - Asia Times) Salah Abdeslam In Washington the US State Departmentissued a global alert on Monday for Americans planning to travel following the deadly militant attacks in France and ...




Click to Apply


Middle East North Africa - Financial Network

MENAFN News Market Data Countries Tools Section  

Middle East North Africa - Financial Network

Main News
News By Industry
News By Country

Islamic Finance News
Private Equity News

How-To Guides
Technology Section

Travel Section

Search News

Market Indices
Quotes & Charts

Global Indices
Arab Indices


Oil & Energy

Currencies Cross Rates
Currencies Updates
Currency Converter

USA Stocks
Arab Stocks

Saudi Arabia 

Economic Calendar
Financial Glossary

Financial Calculators

RSS Feeds [XML]

Corporate Monitor


Real Estate
Submit Your Property

Arab Research
Buy a Research

Press Releases
Submit your PR

Join Newsletters

© 2014 menafn.com All Rights Reserved.  Terms of Service | Privacy Policy | Contact Us | Advertise | About MENAFN | Career Opportunities | Feedback | Help