Few of those working in the Asian loan markets would describe their world of finance as very exciting. Transactions can take months to complete and close, while traditional refinancing is still the bread and butter of the market.
Yet sometimes loan agreements can be surprisingly successful.
A friend of mine, a credit banker, told me about a deal he recently syndicated in the market.
It was a traditional business loan from a Chinese pharmaceutical company. At first glance it was nothing special, but if you dig deeper you would find that the company has focused on growing its plastic surgery business and has acquired a few international plastic surgery companies over the years. years.
This, apparently, has attracted many loan bankers.
Instead of asking questions about the company’s financial performance, industry outlook, or details about the loan structure, my friend got many calls from bankers asking if he could offer recommendations to anyone. plastic surgeons, or whether the client would be willing to offer a discount on an operation.
His answers were all no, of course, but the deal turned out to be hugely successful, perhaps in part because of all these people hoping for freebies. Which made me think: if only I had worked on contracts for whiskey makers. It would have made my day.