The largest deal of this quarter and H1 2023 was the USD 4 billion 5-year-tenor issued to Alibaba Group Holding. Among the mandated lead arranging banks, Bank of China continued to rank first, followed by Industrial & Comm Bank of China and KB Financial Group Inc with a market share of 23%, 4% and 3% respectively in H1 2023.
Due to ongoing market uncertainties, syndicated lending in Greater China decreased by 26.75% year-on-year, with a total of USD 136.18 billion in Q2 2023. In June, Greater China bonds saw increased issuance while syndicated loans volume dipped to a record low (~USD 16.3 billion) since 2023. General Corporate Purposes remained the most popular loans proceeds with 30.68% market share, followed by Capital Expenditure and Refinancing which accounted for 28.43% and 20.61% of the market volumes respectively. The H1 2023 volume was mainly supported by the Financial and Real estate Sectors, with supportive policies boosting recovery in the China property market. Despite significant market downturn, the proportion of syndicated lending in China within Greater China was higher (68%) in comparison to that in Q2 2022. China syndicated loans volume was higher compared to that in Q2 of 2022, possibly due to the USD interest rate hike and the continued pressure on the RMB exchange rate, thus potentially attracting RMB borrowings for cross-border investments.
The top 3 issuances in Q2 were to Alibaba Group Holding Ltd for USD 4 billion, Sands China Ltd for USD 2.49 billion, and GTA Semiconductor Co Ltd for CNY 10.4 million. Among the mandated lead arranging banks, Bank of China remained at the top through H1 of 2023, followed by Industrial & Comm Bank of China and China Construction Bank, all of which contributed market shares of 39.17%, 6.10% and 4.55% respectively.
The transaction volume of global syndicated loans decreased by 34% compared to the same period last year, while the Korean loan market decreased by 51%, recording a total of 89 deals (Q2: 46 deals, Q1: 43 deals).
Among the deals concluded in H1, the largest loans proceeds was Real Estate, accounting for approximately 50% of the deal volume. A notable deal is a 1.3 trillion won loan for the development of the Yongsan United Nations (UN) Command site. Eleven Construction, a real estate developer, announced plans to build commercial facilities on the former UN Command site in Yongsan-gu, Seoul. The business plan is said to be completed this year, 5 years after the site purchase from Korea Land and Housing Corporation. Due to the slump in the real estate market and the rapid increase in financial costs, it is expected that only a portion of the total project cost will be financed with loans, and the difference will be carried out through a sales contract.