* Rising dollar funding prompts call for 20-70 bps pricing hike
* Marks shift of pricing power from borrowers to lenders
* Russian borrowers could turn to domestic lenders for funds
By Michelle Meineke
LONDON, Sept 12 (Reuters) - Potential lenders are leaving syndicated loan deals in Europe, the Middle East and Africa (EMEA's) emerging markets amid rising concerns about dollar funding, in a move that reflects an ongoing shift of power from borrowers to lenders.
The majority of financings in EMEA's emerging markets are U.S. dollar denominated, which makes loan pricing sensitive to the rising short-term interbank dollar, on top of ongoing liquidity concerns.
"Dollar availability is causing a lot of problems and we have seen examples of mandated lead arrangers leaving deals (at the early stages)," a banker at a European lender said.
Some deals in Eastern Europe, which is the busiest region for loans in emerging markets, are beginning to suffer from lenders' growing inability to match borrowers' low margin demands.
For example, Russian mid-sized oil firm Bashneft is being pressed to consider raising the margin on its $300 million loan if it decides to target up to $1.2 billion in general syndication. Continued...
