2013 Thomson Reuters syndicated loan review - BMO, UBS, SocGen move up

Thomson Reuters Logo

Global syndicated lending up 24% from 2012

Global syndicated lending for the first nine months of 2013 reached US$2.9 trillion, representing a 24% increase from the first nine months of 2012. Lending activity during the third quarter of 2013 saw a 7% decrease from the second quarter of this year. Just over 6,700 transactions closed during the first nine months of 2013, an increase of 5% compared to the first nine months of 2012.

Softbank, Nestle top quarterly loans

Softbank Corp’s US$19.9 billion loan re-financing package and a US$13.5 billion loan financing package for Switzerland's Nestle SA topped the list of syndicated loans during the third quarter of 2013. Three of the top 10 loans this year were closed during the third quarter of 2013, all from non-US borrowers.

US lending accounts for 55% of activity

Americas loans accounted for 60% of global loan volume during the first nine months of 2013, as lending in the region increased by 35% from the same period last year. Within the Americas, loan volume in the United States totaled US$1.6 trillion, up 37% compared to the same period last year and representing 55% of global volume. Europe accounted for 20% of global volumes as lending increased by 16% over the first nine months of 2012. Asia Pacific fundraising saw a year-over-year increase of 19%, while Japanese lending fell 11% compared to the first nine months of 2012.

Energy & power, industrials & financials lead lending

Borrowing in the Energy & Power sector totaled US$529.6 billion during the first nine months of 2013, accounting for 18% of global loan activity – down from 20% of global lending during the first nine months of 2013. Retail and consumer products lending lead all sectors with year-over-year gains of 57% and 53%, respectively. Energy & Power, Industrials, Financials and Materials together accounted for 54% of syndicated loan volume during the first nine months of the year.

JP Morgan tops bookrunner rankings

JP Morgan maintained the top ranking for global bookrunners, by proceeds, with US$278.7 billion from 955 transactions during the first nine months of 2013, a decline of 0.9 market share points compared to the first nine months of 2012. Bank of America Merrill Lynch followed, with US$250 billion from 1,023 transactions, or 9.7% of overall loan proceeds during the first nine months of 2013.

Syndicated lending fees up 29%

According to Thomson Reuters/Freeman Consulting, fees from global syndicated loans totaled US$12.0 billion during the first nine months of 2013, an increase of 29% from this time last year. Fees from leveraged lending increased 46% compared to the first nine months of 2012 and accounted for 74% of all lending fees during the first nine months of 2013.

Global Loans - Bookrunners (R1), Jan 1 - Sep 30

Global Loans 3q2013 Bookrunners R1

Source - Thomson Reuters

JefferiesAnd the Best Place to Work in the global financial markets 2016 is...

Register for Financial Markets News Alerts