March 22, 2016 |
The Latin American syndicated loan market started 2016 with few deals in a persistently competitive and highly liquid environment for lenders. However, further deterioration in the commodity sectors and discouraging growth prospects across the region have sparked more caution among banks. Although loan spreads have yet to widen, following the repricing trend seen in the debt capital markets, financiers are expecting an upward shift in deal terms.
“A pricing that we gave before to a bullet-revolver loan, we are now offering for an amortizing facility, maybe with a shorter tenor,” a banker says.
Structured finance, acquisition loans, refinancings and bilateral deals have set the tone for the
Fewer borrowers are coming to the corporate loan and project finance markets as banks become more cautious about doling out credit