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Top Asian 1,000 look towards Debt to fund growth

Top Asian 1,000 look towards Debt to fund growth

(6 July 2012 – Asia) The latest research across the Asian business markets from industry consultants East & Partners has revealed that Asia’s Top 1000 businesses are planning to engage new debt facilities as the predominant method of funding business growth in the coming six months. Over a third of this Institutional and Large Corporate market are looking to use debt facilities to fund growth, with 21.1 percent turning to equity as their dominant growth funding. Almost 10 percent revealed that they are looking to launch an IPO or another form of Capital Raising and a further 11.1 percent are considering a mix of funding forms.

Interestingly only a quarter plan to use existing working capital/liquidity to fund growth plans.

How does your business plan to fund
growth in the next six months
Average % Responded
Debt 30.3
Equity 21.1
Existing working capital / liquidity 25.6
IPO / other capital raising(s) 9.8
Other 2.1
Mix of the above 11.1
TOTAL 100.0

Source: East & Partners’ Asian Institutional Transaction Banking Markets – May 2012.

East & Partners’ Head of Client Relationships, David Brown commented, "Asian businesses are demonstrating increased confidence in the economic prospects of their respective markets. As a result the focus for Asian companies is growth, both organically as well as through M&A activities. With capital market conditions in Asia stable, more companies are taking advantage of available credit"


About East & Partners

East & Partners is Asia-Pacific’s leading business banking and advisory firm. East's research programs and expertise in the Institutional, Corporate, SME, Business, Investment and Financial services markets has enabled the firm to work with virtually every major bank within the region and international clients based in North America and Europe.

Focusing on the needs and priorities that make every client different, East devises and implements strategic action plans that have measurable returns on investment for its clients through the delivery of bespoke, thought-leadership and multi-client research programs. This enables the firm’s clients to execute bullet-proof regional, national and global strategies based on the "real voice" of many thousands of business customer interviews annually.

For more information or to interview East & Partners, please contact:

Sian Dowling
Marcomms & Client Services
East & Partners
t: +61-2-9004 7848
m: + 61-420 583 553
e: sian.d@eastandpartners.com

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