Asia's loan market showed no rebound entering H2, with APAC excluding Japan loan
issuance in USD, EUR and JPY down 15% YoY to $69.0 billion in H1 — the weakest
first half in 16 years. Bankers say spillovers from the Iran war have delayed
investment and deal activity and prompted tighter lender risk reviews,
lengthening financing timelines. These headwinds could persist through the rest
of the year, and competition may compress some loan spreads. BARCLAYS' head of
Asia loan syndicate Andrew Ashman said: "With rising uncertainty, corporate
confidence has weakened," adding that an expected M&A-driven pickup in loan
volume has not materialised and geopolitical tensions may continue to affect
future new loan activity.
