Local banks in emerging markets are offering aggressive financing packages to private equity firms in an effort to win business from international rivals which have curbed lending due to the credit crunch. Three Turkish banks – Garanti Bank, Is Bank and Vakifbank – provided $1.7bn of senior debt for BC Partners’ $3.25bn takeover of Turkish retail group Migros last week. MBK and Macquarie’s recent joint $3.2bn acquisition of C&M in Korea was funded by Shinhan Bank. Local banks, particularly in Korea, Taiwan, Malaysia and China, are offering cheaper financing and readiness to provide more funding for acquisitions of minority stakes in companies, and Nordic banks are also joining the fray, say financiers.

This entry was posted by Gwen Robinson on Monday, February 25th, 2008 at 5:28 and is filed under Capital markets, M&A. Tagged with BC, Garanti Bank, Is Bank, Migros, Vakifbank. Edit this entry.