India’s debt dominance

Leading the pack in Infrastructure Investor’s first quarter 2011 league table is State Bank of India (SBI), which acted as mandated lead arranger on deals worth more than a combined $1.4 billion during the period, handing the bank a global market share during the three months of more than 8 percent (see 

UK-based HSBC takes second place in the table, having led deals worth more than $1.1 billion, with Italy’s UniCredit in third place, having led deals worth $922 million. Fourth and fifth places were taken by France’s Societe Generale and Germany’s WestLB respectively.

SBI is joined in the top ten by three Indian rivals: Punjab National Bank (seventh), Bank of Baroda (ninth) and Canara Bank (tenth).

The prominence of the Indian banks was strongly influenced by India’s 3G Mobile Communications Expansion Project, a greenfield project finance deal involving the rollout of a 2G, 3G and Broadband Wireless Access (BWA) network. All four of the banks committed major loans to this deal in the first quarter with SBI lending $894 million, Punjab National Bank $670 million, Bank of Baroda $559 million and Canara Bank $514 million.

During the first quarter SBI also lent more than $245 million to the Mahan Aluminium Project, involving the construction of an aluminium smelter and captive thermal power plant in Madhya Pradesh; and $68.5 million to Phase I of the Hyderabad Metro Rail Project, which sees the construction of more than 71 kilometres of elevated metro rail in three corridors criss-crossing the city of Hyderabad.

BNP Paribas, the French bank which topped our MLA table for the whole of 2010, lending almost $5.3 billion, has declined to confirm any 2011 figures until June.

The debt participants league table was headed in the first quarter by Japan’s Bank of Tokyo-Mitsubishi UFJ. In the first quarter, it provided more than $64 million to the Shams 1 concentrated solar power project in the United Arab Emirates as part of a 10-strong banking group.

By far the largest project to reach financial close in the first quarter was the $4.7 billion Resorts World at Sentosa refinancing in Singapore. The refinancing is for one of two leisure resorts on the island of Sentosa comprising hotels, casinos, ballrooms, conference centres and theme parks.