In this edition, we cover the latest news on what's been happening in the finance industry as well as a snippet of our latest funding project which we are currently working on that are certain to be of interest to you.
We hope you enjoy the newsletter and as always, please contact us on 1300 728 796 if you have any questions or need our assistance with commercial finance.
Babcock & Brown still battling to resolve crisis
Last Ditch talks were under way last night between Babcock & Brown and its banking syndicate to try to resolve the financial crisis that could plunge the beleaguered asset management group into administration.
Both sides were still hopeful of finding a way out of the impasse, which would require a further lending lifeline to be extended by the group's 25 banks in exchange for a faster repayment of its $3.1 billion of corporate debt.
But with B&B still bogged down in a dispute over a frozen $70 million deposit held by one of its lenders, the German bank Hypo-und Vereinsbank, the knock-on effect has been to complicate the negotiations to secure the syndicate's support for the group's latest restructuring deal...read more
Source: The Age 28 November 2008
Credit growth sluggish amid slowdown
Companies turning to banks for funding in the global financial crisis have kept Australian credit growth steady in the past month despite consumers staying out of the housing market.
Total credit provided to the private sector rose 0.6% in October, following a revised 0.8% increase in September, the Reserve Bank of Australia said today, marking the ninth consecutive month in which credit growth remained below 1%. Analysts were expecting credit to grow by 0.5% in October.
Over the year to October, total credit rose by 9.7%, falling under 10% for the first time since May 2002. The RBA "raised rates in order to slow down people's spending, and finally we're starting to see that now," said Michael Turner of 4Cast...read more
Source: The Age 28 November 2008
Pre Christmas rate cut to stir shoppers
Official interest rates are tipped to be slashed before Christmas as the worst global financial crisis in decades stirs fears about a possible recession in Australia next year.
All 18 economists surveyed by AAP expect the Reserve Bank of Australia to cut interest rates next Tuesday. Eleven expect the cash rate to be slashed by a 75 basis points, following the RBA's December 2 monthly board meeting. Five economists tip a 100-basis point reduction.
Investors, though, are predicting an even bigger cut. There's an 83% chance the RBA will lops its key cash rate by 1.25 percentage points to 4% when its board meets, according to Credit Suisse today...read more
Source: The Age 28 November 2008
Foxwell Road, Coomera Gold Coast
Coomera Town Centre is planned as a major 21st century residential and business hub. It will feature 100,000 sqm of retail and commercial office buildings and residential accommodation, including medium rise apartment towers providing residence with views from Stradbroke Island to Surfers Paradise.
B2B Capital has the ability to supply short term finance for acquisitions, refinance, development and construction for residential, commercial and industrial properties.
We can coordinate and structure finance packages to include the following:
- Senior debt
- Mezzanine funding
- Joint Ventures
This additional financial leverage can facilitate:
- Mergers and acquisitions financing
- An emerging growth opportunity
- A management or other leveraged buyout
- Corporate debt refinancing
- Recapitalization
- Commercial property development
Interest rates and fees associated with any loan approval will vary according to the type and complexity of the loan. All interest and fees will generally be capitalised within the loan facility.
