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Resilient sentiment in tough market conditions

01 October 2008

With global financial markets increasingly volatile and uncertain, export financiers are experiencing rising demand for agency-supported funding across a wide variety of capital investment projects in Asia-Pacific, reports Michele Martensen.

There is a general perception that Asia-Pacific will be less affected by the financial turmoil than its Western counterparts in Europe and the US. However, in today's global marketplace no region can be immune. "Many Asian countries are facing rising inflation and reduced export growth," says Michelle Ling, managing director at Société Générale Corporate and Investment Banking (SG) in Hong Kong.

"Deal pipelines remain strong due to the lack of other financing alternatives in the market. However, execution can be a challenge. Syndication of financing even with export credit agency [ECA] support can be time-consuming and some banks may drop out of deals due to an inability to obtain credit approval," she says.

Distribution is a key element. According to Ling, syndication of a number of large-scale deals has been dragging on for months. "Even club deals are taking longer to complete, so impacting on the number of deals being...

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