Corporate India's acquisition spree has propelled the country ahead of China in terms of raising syndicated loans as companies have mopped up more than $8 bn so far this year to fund expansion projects.
According to data complied by global consulting firm Dealogic, loans gathered by BRIC nations (Brazil, Russia, India and China) rose 104 per cent to 78.9 billion dollar so far this year from 38.7 billion dollar in the corresponding period of 2006.
Indian companies account for 10.5 per cent of the total syndicated loans by BRIC nations, with borrowings of about 8.28 billion dollars in 2007 so far. This is higher than China's 7.9 per cent or over 6 billion dollar, Dealogic said.
"Russia is the most active BRIC nation with a 67.9 per cent market share, followed by Brazil at 13.6 per cent, India at 10.5 per cent and China at 7.9 per cent," the report said.
Dealogic said proceeds of the loans have been mainly used for acquisition purposes. "Around 47 per cent of the proceeds of the BRIC nations syndicated loans was utilised for acquisition purposes," it said.
A whopping 36.7 billion dollar was utilised for seven acquisition deals in 2007, quite a jump from 2.3 billion dollar for six deals in 2006.
Oil and gas was the top industry group, raising 39 billion dollar through 11 deals in 2007. This represented an increase of 186 per cent compared to corresponding period in 2006 at 13.6 billion dollar for 14 deals.
Global financial services major BNP Paribas topped the chart of bookrunners with a volume of 5.4 billion dollar, amounting to 6.9 per cent market share.
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.
http://www.financialexpress.com/latest_full_story.php?content_id=168981
According to data complied by global consulting firm Dealogic, loans gathered by BRIC nations (Brazil, Russia, India and China) rose 104 per cent to 78.9 billion dollar so far this year from 38.7 billion dollar in the corresponding period of 2006.
Indian companies account for 10.5 per cent of the total syndicated loans by BRIC nations, with borrowings of about 8.28 billion dollars in 2007 so far. This is higher than China's 7.9 per cent or over 6 billion dollar, Dealogic said.
"Russia is the most active BRIC nation with a 67.9 per cent market share, followed by Brazil at 13.6 per cent, India at 10.5 per cent and China at 7.9 per cent," the report said.
Dealogic said proceeds of the loans have been mainly used for acquisition purposes. "Around 47 per cent of the proceeds of the BRIC nations syndicated loans was utilised for acquisition purposes," it said.
A whopping 36.7 billion dollar was utilised for seven acquisition deals in 2007, quite a jump from 2.3 billion dollar for six deals in 2006.
Oil and gas was the top industry group, raising 39 billion dollar through 11 deals in 2007. This represented an increase of 186 per cent compared to corresponding period in 2006 at 13.6 billion dollar for 14 deals.
Global financial services major BNP Paribas topped the chart of bookrunners with a volume of 5.4 billion dollar, amounting to 6.9 per cent market share.
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.
http://www.financialexpress.com/latest_full_story.php?content_id=168981
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