Prakash Chakravarti is a senior writer with Thomson Reuters/IFR/LPC, where he has worked for nearly 12 years in several senior positions. He has written extensively on Asian loan markets, including contributing to books and management reports, and been instrumental in the events and conferences organised by IFR relating to capital markets in the region. He has also covered other asset classes such as bonds and equity, and written about trends in commercial and investment banking and capital markets in Asia.
International lenders are taking the vetting of potential Chinese borrowers to previously unheard of lengths as the US-China trade war intensifies, dealing a further blow to already flagging syndicated loans to China.
Syndicated lending in Asia-Pacific ex-Japan fell 1% to US$324.17bn in the first nine months of 2018 from a year earlier, with third-quarter volume of US$79.21bn down 16% as China’s economy and M&A activity slowed amid fears of a global trade war, according to LPC data.
Tata Sons, the holding company of Indian conglomerate Tata Group, has drawn a poor response for a US$1.5bn multi-tranche loan, in a sign of resistance from lenders to Indian borrowers pushing for aggressive terms.