LatAm Loan Volume Halves

Syndicated loan volume from LatAm and the Caribbean plummeted 49% in the first three quarters of 2008 versus the corresponding period of last year, according to Dealogic. Borrowers raised some $37.0bn in the period as the bank market tightened up and corporates stepped out. LatAm is the least active EM region in the period for loans, with volume relatively in line with the $30.4bn raised in India and the subcontinent. Southeast Asia bucked the global trend with a 50% surge in activity to $49.0bn. Europe and North America contracted at a similar rate to LatAm, hitting $775bn and $945bn, respectively. Bankers say LatAm corporates are sitting comfortably with their maturities, having taken advantage of rock-bottom spreads to refinance aggressively between 2005-2007 at tenors of 5 and 7 years. Dealogic data shows LatAm corporates face aggregate maturities through the end of the year of just $4.1bn. Deals slated to mature between October and December include a $620m facility for Pemex, $600m from PDVSA, $561m at Grupo Kuo and a $300m CSN transaction.