GLOBAL SYNDICATED LENDING UP 29% FROM 2012
Global syndicated lending for full year 2013 reached US$4.2 trillion, a 29% increase compared to full year 2012 and the strongest annual period for lending since 2007. Lending activity during the fourth quarter of 2013 saw a 14% increase from the third quarter of the year. Nearly 9,500 transactions closed during full year 2013, an increase of 10% compared to full year 2012.
VERIZON, GENERAL ELECTRIC, SOFTBANK TOP 2013 LOANS
Verizon Communications US$61.0 billion financing package to acquire a remaining stake in Verizon Wireless topped the list of syndicated loans this year, followed by General Electric Capital Corp with a $US22.7 billion loan financing and Japan's Softbank with a $19.9 billion re-financing package in September.
US LENDING ACCOUNTS FOR 54% OF ACTIVITY
Americas loans accounted for 60% of global loan volume during full year 2013, as lending in the region increased by 36% from the same period last year. Within the Americas, loan volume in the United States totaled US$2.3 trillion, up 40% compared to the same period last year and representing 54% of global volume. Europe accounted for 20% of global volumes as lending increased by 26% compared to full year 2012. Asia Pacific fundraising saw a year-over-year increase of 39%, while Japanese lending fell 15% compared to full year 2012.
ENERGY & POWER, INDUSTRIALS & FINANCIALS LEAD LENDING
Borrowing in the Energy & Power sector totaled US $770.5 billion during full year 2013, accounting for 18% of global loan activity - down from 20% of global lending during full year 2012. Telecommunications and retail lead all sectors for syndicated loans with year-over-year gains of 85% and 54%, respectively. Energy & Power, Industrials, Financials and Materials together accounted for 55% of syndicated loan volume during full year 2013.
JP MORGAN TOPS BOOKRUNNER RANKINGS
JP Morgan maintained the top ranking for global bookrunners, by proceeds, with US$398.9 billion from 1,360 transactions during full year 2013, a decline of 0.8 market share points compared to full year 2012. Bank of America Merrill Lynch followed, with US$359.7 billion from 1,421 transactions, or 9.7% of overall loan proceeds during full year 2013.
SYNDICATED LENDING FEES UP 26%
According to Thomson Reuters/Freeman Consulting, bookrunning fees from global syndicated loans totaled US$17.6 billion during full year 2013, an increase of 26% from this time last year. Fees from leveraged lending increased 36% compared to full year 2012 and accounted for 81% of all lending fees during full year 2013.