Study: ME firms sign $6.65b loan pacts in Q1
13 Apr 2010
(MENAFN) A report issued by Thomson Reuters LPC said that Middle Eastern firms signed syndicated loans worth of $6.65 billion in the first quarter, a 30 percent rise over the $5.13 billion in the corresponding quarter a year earlier, Reuters reported.
In the first quarter, speculation over Dubai World’s $26 billion debt restructuring cast a shadow over the Middle East loan market, but that started to ease with the emergence of several deals that showed lender appetite for strong, government-backed credits and well-structured deals.
Data showed that Abu Dhabi government-owned IPIC’s $3.6 billion, three-year loan was the first UAE loan to be launched after Dubai World’s standstill request in November, and was the biggest corporate Gulf loan since its $5 billion loan of 2009.
The report said that the Middle Eastern loan market has benefited from fears of bond market contagion from Dubai World. Both IPIC and Emirates Aluminium originally planned to secure funds in the bond market but abandoned their plans in favor of loans during the first quarter of the year.
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