Private credit in the Asia Pacific region
The Asia Pacific region has seen significant growth in the private credit market in recent years, providing excellent opportunity for investors around the world.
We anticipate that private credit will play an important role in the economic recovery of the Asia Pacific region following COVID-19 and will continue to be a growing source of liquidity for borrowers in New Zealand.
Partner Steve Gallaugher and Solicitor Tim Robinson authored the New Zealand chapter of Baker McKenzie’s Guide to Private Credit in Asia Pacific. The guide examines key issues for consideration in private credit transactions providing both a high-level overview and a more detailed jurisdiction-by-jurisdiction analysis for 14 countries.
Topics covered in the report
- 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”?