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Loans to Indian cos climb 14% to $29 bn in '09

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Press Trust of India New Delhi
Last Updated : Aug 04 2009 | 4:17 PM IST

Syndicated lending to companies in India has shot up by 14 per cent to $29 billion so far this year, even as loans to firms in the Asia-Pacific region more than halved to $103 billion during the same period.     

Moreover, India has accounted for 28 per cent of the total deal volume so far in 2009.

The entities in the Asia-Pacific region (excluding Japan) raising money through syndicated lending has reached $103.3 billion, global deal tracking firm Dealogic said in a report. Syndicated lending is a process whereby a group of banks come together to finance a project.

Syndicated lending to India jumped to $29 billion, an increase of 14 per cent as against the same period a year ago. In the comparable period, the total amount stood at $25.7 billion.

Out of the total volume, India's share is 28 per cent, Dealogic noted.     

"This represents a 14 per cent increase on the $25.7 billion raised in 2008 year-to-date, making India the only top 10 nation in Asia Pacific (excluding Japan) to register year-on-year growth," it said.

SBI Capital Markets has topped as the lead arranger for syndicated loans with 18.5 per cent market share.

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The APAC loan volume represents a decline of 60 per cent from $258.8 billion raised during the same period in 2008, Dealogic said.

However, on a sequential basis, second quarter syndicated lending grew 51 per cent over Q1. The volume in the Q2 of 2009 stood at $54.1 billion, representing the second consecutive quarterly rise.

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First Published: Aug 04 2009 | 4:17 PM IST

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