Global syndicated lending increase 8% from 2013
Global syndicated lending during the first half of 2014 reached US$2.2 trillion, an 8% increase compared to the first half of 2013 and the best opening period for lending since 2007. Lending activity during the second quarter saw a 19% increase from the first quarter of this year. Just over 4,700 transactions closed during the first half of 2014, an increase of 2% compared to the first half of 2013.
Wal-Mart, Medtronic top first half loans
Wal-Mart Stores' US$17.3 billion financing package to refinance existing debt topped the list of syndicated loans this year, followed by Medtronic's $US16.3 billion loan to finance the US$47.9 billion purchase of Ireland's Covidien PLC, which was announced in June.
US lending accounts for 53% of activity
Americas loans accounted for 58% of global loan volume during the first half of 2014, as lending in the region increased by 4% from the same period last year. Within the Americas, loan volume in the United States totaled US$1.2 trillion, up 3% compared to the same period last year and representing 53% of global volume. Europe accounted for 24% of global volumes as lending increased by 34% compared to first half 2013. Asia Pacific fundraising saw a year-over-year increase of 7%, while Japanese lending fell 15% compared to the first half of 2013.
Energy & power, industrials & financials lead lending
Borrowing in the energy & power sector totaled US$372.9 billion during the first half of 2014, accounting for 17% of global loan activity, down from 18% of global lending during first half 2013. Healthcare and consumer staples lead all sectors for syndicated loans with year-over-year gains of 52% and 37%, respectively. Energy & power, industrials and financials together accounted for 45% of syndicated loan volume during first half 2014 compared to 46% a year ago.
JP Morgan tops bookrunner rankings
JP Morgan maintained the top ranking for global bookrunners, by proceeds, with US$191.6 billion from 777 transactions during the first half of 2014, a decrease of 1.4 market share points compared to first half 2013. Bank of America Merrill Lynch followed, with US$181.9 billion from 675 transactions, or 9.4% of overall loan proceeds during the first half of 2014.
Syndicated lending fees up 14%
According to Thomson Reuters/Freeman Consulting, bookrunning fees from global syndicated loans totaled US$10.0 billion during the first half of 2014, an increase of 14% from this time last year. Fees from leveraged lending increased 11% compared to first half 2013 and accounted for 75% of all lending fees during the first half of 2014.