Australia—cross border banking and finance guide
Produced in partnership with Herbert Smith Freehills

The following Banking & Finance practice note produced in partnership with Herbert Smith Freehills provides comprehensive and up to date legal information covering:

  • Australia—cross border banking and finance guide
  • Loan market and developments
  • Please provide a brief overview of the current state of the loan markets in your jurisdiction and any significant recent market developments.
  • Please provide a brief overview of forthcoming changes to the law or other matters which may affect the loan markets in your jurisdiction or the responses to the questions below.
  • Lending
  • Is it necessary to obtain any consents or licences in order to lend in your jurisdiction or enforce rights under a loan agreement and if so what is the process for obtaining such consent or licence? Are there any other restrictions on lending in your jurisdiction that foreign lenders should be aware of?
  • Are there any taxes, duties or other charges associated with making loans to entities which are incorporated in your jurisdiction?
  • Are there any restrictions, controls, fees, taxes or charges on foreign exchange in your jurisdiction?
  • How is debt normally transferred in your jurisdiction?
  • Security and guarantees
  • More...

Australia—cross border banking and finance guide

Loan market and developments

Please provide a brief overview of the current state of the loan markets in your jurisdiction and any significant recent market developments.

Australian loan markets continue to be quite strong. There is a continuing high demand (particularly for refinancings and for infrastructure and project financings), and robust competition between lenders in some sectors.

Foreign banks continue to maintain a strong presence in the Australian market. Participation by Asian, European and Canadian banks remains prominent.

Export credit agencies are also key players in Australian loan markets, where materials or services for a project are being provided by an entity of a relevant nationality, such as for the large liquefied natural gas projects in northern Australia.

Official interest rates remain low at the time of writing, although banks' costs of funding is somewhat higher. Availability for longer tenor loans (+five years) is quite limited, with most loans having a tenor of three to five years, but is available in some sectors (particularly from some foreign banks).

Please provide a brief overview of forthcoming changes to the law or other matters which may affect the loan markets in your jurisdiction or the responses to the questions below.

The Personal Property Securities Act 2009 (Cth) and its related legislation (the PPSA) came into effect in 2012 and introduced a new regime governing the taking of

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