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India mobilised maximum debt in Asia

July 14, 2009 17:59 IST

Asian companies' fund raising through dollar-denominated loan facilities has touched $14.7 billion so far in 2009, with India accounting for the majority of the debt mobilised.

Asia (excluding Japan)'s dollar-denominated loan volume has reached $14.7 billion so far this year, the lowest year-to-date level since 2003, global deal tracking firm Dealogic said, adding that India's SBI Capital Markets has topped the lead arranger for such loans.

"Lending to India is the highest in the region with $3.3 billion via 11 loans, accounting for 22.1 per cent of total volume in 2009," the report said

However, the five year low volume of $3.3 billion represents a 76 per cent drop from $13.8 billion raised by Indian corporate houses via 38 deals in 2008.

SBI Capital Markets has topped as the lead arranger for the dollar-denominated loans with 8.3 per cent market share, followed by Singapore-based DBS Bank (7 per cent) and Mitsubishi UFJ Financial Group (5.7 per cent), the report said.

However, the loan volume of $14.7 billion represents a decline of 74 per cent from the $55.7 billion raised during the same period in 2008.

In spite of the number of Asian companies involved the deal has come down 65 per cent to a 7 year-low level at 84 from about 240 deals in the year-ago period.

The average deal size has fallen 25 per cent to $175 million in 2009 from $232 million in 2008, the report said.

"Sasan Power's $2.9 billion investment grade loan signed in April is the largest deal from the region so far in 2009 and is the third largest debt transaction from India on record," it said.

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