Loan Ranger: "Girly" syndications in the pipeline

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Loan Ranger: "Girly" syndications in the pipeline

loan ranger

Last week’s record falls for the rouble and diminishing hopes for a return of international banks to Russian lending in 2015 has put increasing focus on Russian banks to increase local market loans business next year.

But there’s one problem, according to a loans market official – they are going to have to engage more in syndication. That in turn will mean accepting a way of doing business that is less macho than they are used to, he reckoned.

“The Russian banks up to now have seen loan syndication as somehow a bit girly,” said the loans official, who quickly apologised for his choice of words.

While Loan Ranger disputes that there is anything unworthy either in being girly or syndicating loans, there's a grain of truth in the official's view: Russian banks will face a cultural change, because they will need to distribute more of their risk.

Of course, Russia will face a lot of change next year – oil has fallen to levels that will bite the country’s budget hard, recession is a rising prospect and deals with China, rather than the west, could become increasingly important.

So loan syndication could be the least of Russian banks’ problems. But if this episode gives them another string to their bow then it might be a good and lasting experience. Being more girly might be just the strategy for the new era.

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