Asia-Pacific loans hit three-year low despite China M&A boom

Hong Kong

SYNDICATED loan volumes in the Asia-Pacific, excluding Japan, fell for the second consecutive year slipping to a three-year low of US$463.8 billion in 2016 as slower economic growth and geopolitical turbulence curtailed bank lending despite a surge in M&A (merger and acquisition) activity from China that boosted North Asian loans.

Lending in 2016 of US$463.8 billion from 1,291 transactions, was down 1.6 per cent from US$471.26 billion in 2015, and is the lowest annual figure since 2013 when US$462 billion was raised from 1,289 loans. Fourth-quarter 2016 volume of US$103.14 billion was also the lowest fourth-quarter tally since 2012 and 1.85 per cent lower year on year.