APAC syndicated loans hit 13-year low as firms seek cheaper funding

SEA lending activity slowed considerably, LSEG said.

Syndicated lending in the Asia Pacific (APAC) region excluding Japan fell to $217.6b in the first six months of 2026, a 20.2% year-on-year drop from the same period a year earlier.

This is the lowest half-year tally since 2013, said the London Stock Exchange Group (LSEG). Trade tensions, policy uncertainty, and energy shocks weakened confidence and delayed borrowing.

Activity shifted toward refinancing and alternative funding, keeping deal flow soft and margins under pressure, LSEG said.

Syndicated lending tally for Q2 was $119.2b, down 19.4% YoY compared to the US$147.9b raised in Q2 2025.

Lending activity across Southeast Asia slowed considerably, according to LSEG. Singapore, the biggest market in SEA, posted a 7.3% drop to $31.9b despite closing the largest loan in the region in Q2.

Across APAC, Australia was the biggest loan market, making up 26.1% of the region’s loan volume. Its loan volume still fell 4.6% YoY to $56.8b during the H1 period.

China and Hong Kong posted $20b and $41.3b in loans, for a combined 28.2% of the market share. Weak global demand and geopolitical uncertainties reduced export growth and corporate revenues in China, LSEG said.

“In addition, a shift toward cheaper bilateral and alternative financing channels has further limited syndicated loan volume,” the LSEG wrote.