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had found it challenging to raise money from the loan markets as quite a few MNC banks had become inward looking and withdrawn from the local markets here on account of losses in their domestic markets.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 further 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
 Jan 26 2015 - GCC Secretary General Receives France AmbassadorSaudi Press Agency
(MENAFN - Saudi Press Agency) Secretary General of Gulf Cooperation Council (GCC) Dr. Abdullatif bin Rashid Al-Zayani received here today the French Ambassador to the Kingdom of Saudi Arabia, ...

 Jan 26 2015 - Guinean President Arrives in Riyadh to Offer Condolences on Death of Late King AbdullahSaudi Press Agency
(MENAFN - Saudi Press Agency) Guinea's president Alpha Conde arrived here today to offer condolences on the death of late King Abdullah bin Abdulaziz Al Saud. At Riyadh Air Base Airport, Guinean ...

 Jan 26 2015 - Russia's Putin says Kiev refuses political solution to crisis in eastSaudi Press Agency
(MENAFN - Saudi Press Agency) Russian President Vladimir Putin said on Monday that the Kiev government was refusing a political solution to violence in the eastern Ukraine where fighting has flared ...

 Jan 26 2015 - Alexis Tsipras sworn in as Greek prime ministerSaudi Press Agency
(MENAFN - Saudi Press Agency) Athens, Rabi'II 6, 1436, Jan 26, 2015, SPA - Leftist SYRIZA leader Alexis Tsipras is sworn in as Greece's new prime minister, hours after his party's landslide win in ...

 Jan 26 2015 - Côte d'Ivoire's President Arrives in Riyadh to Offer Condolences on Death of Late King AbdullahSaudi Press Agency
(MENAFN - Saudi Press Agency) Riyadh, Rabi'II 06, 1436, January 26, 2015, SPA - President of CØ£´te d'Ivoire Alassane Ouattara arrived here today to offer condolences on the death of late King ...

 Jan 26 2015 - FGB announces deal with Dalma EnergyEmirates News Agency (WAM)
(MENAFN - Emirates News Agency (WAM)) ABU DHABI, 25th January, 2015 (WAM) - FGB looks to maintain strong growth in 2015 having already closed a USD 313.7 million secured syndication facility on ...

 Jan 26 2015 - Kuwait projects $24 bn deficit despite spending cutsAFP
(MENAFN - AFP) Kuwait on Monday projected a $24-billion deficit in its new fiscal year budget despite a massive spending cut due to plunging oil prices. Revenues for 2015-2016 are projected at $41.1 ...

 Jan 26 2015 - New Saudi leaders to press economic diversificationAFP
(MENAFN - AFP) Saudi Arabia's new leadership will push forward efforts to diversify the growing but oil-dependent economy, while easing procedures for investors, senior officials said on ...

 Jan 26 2015 - Dubai Islamic Bank Group net profit up by 63 per cent to AED 2.8 billion in 2014Emirates News Agency (WAM)
(MENAFN - Emirates News Agency (WAM)) DUBAI, 25th January, 2015 (WAM)-Dubai Islamic Bank (DFM: DIB), today announced that its net profit surged by 63 per cent to AED 2.80 billion, up 63 per cent in ...

 Jan 26 2015 - FCCI organises first Serbian Business and Investment ForumEmirates News Agency (WAM)
(MENAFN - Emirates News Agency (WAM)) ABU DHABI, 25th January 2015 (WAM) -- Federation of UAE Chambers of Commerce and Industry (FCCI) on Sunday organised the First Serbian Business and Investment ...

more...


 






Google

Internatinal Property Show

 
 

Middle East North Africa - Financial Network

MENAFN News Market Data Countries Tools Section  
 

Middle East North Africa - Financial Network
Arabic MENAFN

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

Commodoties

Oil & Energy

Currencies Cross Rates
Currencies Updates
Currency Converter

USA Stocks
Arab Stocks
 

Algeria 
Bahrain 
Egypt 
Iraq
Jordan 
Kuwait 
Lebanon
Morocco 
Oman 
Palestine
Qatar 
Saudi Arabia 
Syria
Tunisia 
UAE 
Yemen

Weather
Economic Calendar
Financial Glossary


Financial Calculators

RSS Feeds [XML]

Corporate Monitor

Events

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