Thai lending market goes international
Corporate borrowers in Asia can expect cheaper loans as a result of the adoption of standard form loan agreements in Thailand.
Precious Shipping, one of Thailand's largest shipping companies, has just secured a $100 million loan facility using the Loan Market Association (LMA) standard agreement. This offers a best practice approach and standardizes loan agreements.
Lawyers involved in the deal believe this could herald a widespread acceptance of best practice in the Thai lending market.
Jeremy Jennings-Mares, managing partner for Freshfields Bruckhaus Deringer, comments: "We based the facility agreement on the LMA in the hope that these would be taken up by the Thai lending market generally and become a starting point for negotiation of loan agreements that meet "international" market standards. This would in turn make for greater efficiency in negotiation of the loan document and the lending process, leading to lower costs for borrowers."