The Private Credit market in Asia Pacific has grown significantly over recent years, providing an opportunity for regional and global investors.
Covering 14 Asia Pacific jurisdictions, the Baker McKenzie Guide to Private Credit in Asia Pacific focuses on key issues for consideration in Private Credit transactions providing both a high level overview and a more detailed jurisdiction-by-jurisdiction analysis.
It is expected that Private Credit will play a meaningful role in the recovery of the Asia Pacific economy following COVID-19 and will be an important source of liquidity for borrowers in the region.
- Can a fund make a new loan to a borrower incorporated in this jurisdiction without a banking license?
- Do taxes or other similar charges usually present a material issue to a fund lending directly to, or taking credit support from, a company incorporated in this jurisdiction?
- Can interest, fees and remuneration be agreed freely between a lender and a borrower in this jurisdiction?
- Can a fund hold directly all security granted by a security provider incorporated in this jurisdiction?
- Can a company incorporated in this jurisdiction provide credit support for the acquisition of its or its holding companies' shares?
- How strong in relative terms is credit support given by a company in this jurisdiction likely to be?
- Is the enforcement regime in this jurisdiction relatively lender friendly?
We will be happy to provide more details of the rules and practice in any jurisdiction.
NOTE: The content of this guide is current as of 20 May 2020; the high-level guidance in this document is not intended to be comprehensive legal advice. We will be keeping this resource up to date so we encourage you to refer to the most recent report available on this page.