APAC lending surges to record high HONG KONG, Dec 29 (LPC) – Syndicated lending in Asia Pacific (ex-Japan) jumped to a historic high in 2023 despite weakened demand for capital and subdued M&A flows against a backdrop of rising rates, geopolitical tensions and a lacklustre economic recovery in China. Loan volumes in Asia Pacific (ex-Japan) rose 3.2% year-on-year to US$582.60bn in 2023, eclipsing 2022’s record high of US$564.71bn, with dealflow climbing to 1,615 compared with 1,492 a year earlier, according to LPC data. Lending activity in the last quarter surged 13.7% year-on-year to US$125.31bn, even as borrowers grappled with an uncertain economic environment arising from monetary policy tightening – mainly in the West – that led to higher costs of borrowing and distress in China’s real estate sector that has seen some bellwether credits struggling for survival. China, India and Indonesia were among the major loan markets in Asia to record significant growth in 2023, while Australia and Hong Kong posted the biggest declines, plunging 32.7% and 20.7%, respectively to US$73.07bn and US$100.55bn in 2023. China remained the largest market in the region despite an unsettling real estate crisis, recording a 30.6% jump in loan volumes to US$203.49bn. Renminbi-denominated loans dominated the activity as monetary easing policies in the country led to cheaper costs of borrowing in local currency compared with its foreign counterparts. https://lnkd.in/gWpEpWPX #lending #syndications #loans #asiapacific #capitalmarkets #mergersandacquisitions #leveragedfinance #leveragedloans #leveragedbuyouts #buyouts #privatecredit #directlending #chinaeconomy #indianeconomy #debt #debtcapitalmarkets #corporatefinance #interestrates #esg #sustainability #sustainablefinance #ifr #lpc