Indian bell curve
Activity in India slowed slightly in terms of the number of mandates. In 1Q18, the country generated 11 new mandates on a total of USD 20.49bn of debt, compared with 13 roles in 4Q17 on a total debt of USD 18.64bn from seven companies.
This pales in comparison to 3Q17 when 28 roles were awarded in July and another 16 in August on a total of USD 44.12bn of debt. The mushrooming of mandates in 3Q17 was a one-off, resulting from the Reserve Bank of India pushing some of the country’s largest debtors — the so-called “dirty dozen” —into restructurings under the auspices of the National Company Law Tribunal (NCLT). The RBI later followed up with another list of 28 companies that needed to be put into the process starting in December 2017 unless the claims against them were resolved by then.
Even though the growth of mandates in India has slowed — and as advisors continue working towards seeking a resolution on the cases they have taken on — the country is now by far the biggest restructuring market in Asia. Out of the USD 40.83bn debt covered by this report, Indian restructurings accounted for 50.2%, up from 40% for the full year 2017.
Click here for the full 1Q18 APAC Restructuring Advisory Mandates.