ASIA-PACIFIC-WIDE Trends and Developments Contributed by: Anand Shah, Suharsh Sinha, Ishan Handa and Saloni Thakkar, AZB & Partners
Conclusion The private credit landscape in the Asia Pacific region is undergoing rapid transformation, driven by regu - latory reforms, evolving market dynamics, and the growing sophistication of borrowers and investors. As seen from the above analysis, India stands out as a key market, with a supportive policy environment, ongoing legislative reforms, and a large and dynamic corporate sector. Australia continues to lead in terms of market maturity and deal activity, while Vietnam and Thailand (amongst other APAC jurisdictions) offer significant growth potential, particularly in infra - structure, real estate, and technology sectors. As the market continues to evolve, private credit is poised to play an increasingly important role in supporting economic growth and development across the Asia Pacific region.
bank lending remains substantial, with domestic bank credit to the private sector standing at approximately 119% of GDP at the end of 2023 – one of the high - est ratios in ASEAN. Non-performing loans within the SME sector remained elevated at 7.2% in 2024, with special mention loans increasing to 13.4%. The resolution of corporate bond defaults is also cumbersome, with court-supervised rehabilitation proceedings often prolonged – extending up to five years with possible extensions – and restrictions on claim transfers during insolvency creating uncertainty for investors.
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