(Reuters Basis Point) – Excluding Japan, Asia Pacific syndicated loan volume rose to US$164.5bn in the first six months of 2013, up 15.5% from the same period last year, as several large M&A financings boosted lending activity.
M&A lending of US$30.5bn made up 18.5% of Asia Pacific’s total loan volume. M&A loans have already exceeded 2012’s US$28.4bn, which puts 2013 on track to be the second-biggest year for M&A in a decade.
2013 is likely to see record Asian M&A lending, with more large deals in the market including a US$4bn loan backing China pork producer Shuanghui International’s acquisition of US firm Smithfield Foods and a bridge loan for China Mengniu Dairy’s proposed HK$11.4bn (US$1.47bn) takeover of Yashili International Holdings.
This year could near the record annual M&A loan volume of US$80bn set in 2007 supported by the then active leveraged buyout market in Australia.