Asian market indecisive over term loan Bs

Author: Ashley Lee | Published: 12 Nov 2014

Sponsors are increasingly turning to the term loan B (TLB) market to refinance – or even finance – acquisitions. But market participants have warned that TLBs aren’t for everyone.

Fortescue Metals opened the market for Asian TLB credits in 2012 with its $5 billion offering. Since then interest has grown sharply.

In 2013 seven Australian, one Singapore and one Indian company tapped the TLB market for total issuance from Asia ex-Japan of $3.35 billion according to Dealogic. This year volumes have dropped: only four Australian companies and one from Hong Kong have raised $1.71 billion from the region year-to-date.

Bankers speaking at the Asia Securities Industry and Financial Markets Association’s (Asifma) annual conference last week warned that issuers must be flexible when deciding between...