Global syndicated lending falls 8% from 2014
Global syndicated lending reached US$2.1 trillion during the first half of 2015, an 8% decrease compared to the first half of 2014 and the slowest six-month period for lending since the first half of 2013. Lending activity during the second quarter quarter saw a 24% increase from the first quarter this year. Nearly 4,700 transactions closed during the first half, a decrease of 12% compared to the first half of 2014.
Aquisition financing continues during second quarter
Royal Dutch Shell PLC secured a US$15.2 billion financing package to fund its US$81.0 billion acquisition of BG Group, topping the list of acquisition-related syndicated loans closed during second quarter of 2015. Other notable acquisition-related loans included CVS Health Corp's US$13.0 billion facility and Mylan's $11.1 billion loan to fund its proposed purchase of Perrigo PLC.
US lending accounts for 52% of activity
Americas loans accounted for 59% of global loan volume during the first half of 2015, as lending in the region decreased by 3% from the same period last year. Within the Americas, loan volume in the United States totaled US$1.1 trillion, down 3% compared to the same period last year and representing 52% of global volume. Europe accounted for 22% of global volumes as lending decreased by 19% compared to the first half of 2014. Asia Pacific fundraising saw a year-over-year decrease of 18%, while Japanese lending registered a downtick of 1% compared to the first half of 2014.
Energy & power, financials & industrials lead lending
Borrowing in the Energy & Power sector totaled US$410.0 billion during the first half of 2015, accounting for 19% of global loan activity, flat compared to lending in the sector during the first half of 2014. Technology and Retail lending saw the largest year-over-year percentage increases, up 13% and 8%, respectively. Energy & Power, Financials and Industrials together accounted for 47% of syndicated loan volume during the first half of 2015, compared to 46% a year ago.
Bank of America Merrill Lynch tops bookrunner rankings
Bank of America Merrill Lynch secured the top ranking for global bookrunners, by proceeds, with US$155.0 billion from 594 transactions during the first half of 2015, a decrease of 0.1 market share points compared to the first half of 2014. JP Morgan fell to second place, with US$150.2 billion or 8.1% of overall loan proceeds during the first half of 2015, a loss of 1.2 market share points from a year ago.
Syndicated lending fees down 22%
According to Thomson Reuters/Freeman Consulting, bookrunning fees from global syndicated loans totaled US$7.2 billion during the first half of 2015, a decrease of 22% from last year. Fees from leveraged lending decreased 32% compared to a year ago and accounted for 68% of all lending fees during the first half of 2015.