India has been ranked ahead of China in a list of top 10 emerging markets that have mobilized huge funds through syndicated loans.
NEW DELHI: India has been ranked ahead of China in a list of top 10 emerging markets that have mobilized huge funds through syndicated loans, with corporates of the country raising over 35.6 billion dollar in 2007.
Corporate India has garnered over 35.65 billion dollar, which constitutes 5.94 per cent of the total syndicated loan volume across the world, through 112 deals, global consulting firm Dealogic said.
According to data compiled by Dealogic, India is even ahead of the fastest growing economy China, which could mobilised 29.21 billion dollar by way of 90 deals last year.
Russian Federation and United Arab Emirates were the other two emerging market nationalities, who mobilised a whopping 87.91 billion dollar and 49.71 billion dollar respectively, securing the first two positions of the table.
The BRIC region accounted for 29 per cent of emerging market loan volume totalling 176.5 billion dollar through 399 deals in 2007, up 70 per cent from the 103.5 billion dollar raised through 314 deals in 2006, Dealogic added.
Syndicated loan refers to a large sum of funds provided by a group of banks collectively to a borrower. There is usually one lead bank that takes a percentage of the loan and syndicates the rest to other banks.
Emerging Market syndicated lending totalled 600.2 billion dollar through 1,539 deals in 2007. This represents an increase of 46 per cent compared to the 156.6 billion dollar raised by way of 1,312 deals in 2006.
The finance sector led emerging market syndicated loan volume with 110.2 billion accounting for 18 per cent of the market, followed by the Oil and Gas sector with 86.1 billion for a 14 per cent market share.
Global financing major Citigroup topped the chart of book runners in 2007, with volume of 45.7 billion dollar via 161 deals amounting to a market share of 7.6 per cent. Calyon followed suit with a volume of 35.5 billion through 111 deals representing a 5.9 per cent market share.
The leveraged lending volume jumped by 106 per cent in 2007, from 66.4billion dollar via 290 deals in 2006 it increased to 136.6 billion dollar by way of 371 deals.
However, investment grade loans increased 14 per cent from 403.7 billion dollar through 1,022 deals to 463.6 billion dollar by way of 1.168 deals during the same period.
In the first half of 2007, corporate India had raised over 8 billion dollar through syndicated loans by way of 33 deals led by Reliance Industries, which alone had mopped up a whopping 2.7 billion dollars.
Corporate behemoth RIL single handedly had raised 2.7 billion dollar by syndicated loans through three deals with a consortium of 26 banks in the first six months of this year.
Homegrown major Tata Group raised 400 million dollar, British mobile giant Vodafone and largest lender State Bank of India both mopped up 300 million dollar each, while HDFC gathered 285 million dollar through syndicated loans.
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