Global syndicated lending falls 3% from 2014.
Global syndicated lending reached US$4.7 trillion during full year 2015, a 3% decrease compared to a year ago and the slowest annual period for lending since 2013. Lending activity during the fourth quarter quarter saw an 11% increase from the third quarter of this year. By number of closed loan transactions, volume decreased 3% compared to a year ago.
Largest All-Time Syndicated Loan Tops Annual List Of Financings
Anheuser-Busch InBev secured a record-breaking US$75.0 billion financing package to fund its US$120.7 billion acquisition of SAB Miller topping the list of all-time syndicated loans. Other notable acquisition-related loans include a $31.5 billion loan for Teva Pharmaceuticals and a $30.5 billion facility from Charter Communications to fund its US$78.4 billion acquisition of Time Warner Cable.
US Lending Accounts For 49% Of Activity
Loans to borrowers in the Americas accounted for 56% of global loan volume during 2015, falling 2% compared to last year. Within the Americas, loans by U.S. borrowers totaled US$2.2 trillion, down 2% compared to the same period last year and representing 49% of global volume. Europe accounted for 24% of global volumes as lending decreased by 7% compared to full year 2014. Asia Pacific fundraising saw a year-over-year decrease of 14%, while Japanese lending registered a uptick of 2% compared to 2014.
Energy & Power, Financials & Industrials Lead Lending
Borrowing in the Energy & Power sector totaled US$844.2 billion during full year 2015, accounting for 18% of global loan activity, down 5% compared to lending in the sector during 2014. Telecom and Financials lending saw the strongest year-over-year percentage gains this year, up 10% and 5%, respectively. Energy & Power, Financials and Industrials together accounted for 46% of syndicated loan volume during full year 2015, on par with year ago levels.
Bank Of America Merrill Lynch Tops Bookrunner Rankings
Bank of America Merrill Lynch secured the top ranking for global bookrunners, by proceeds, with US$336.6 billion from 1,226 transactions during full year 2015, a decrease of 0.6 market share points compared to full year 2014. JP Morgan fell to second place, with US$309.1 billion or 7.6% of overall loan proceeds during full year 2015, a loss of 2.1 market share points from a year ago.
Syndicated Lending Fees Down 11%
According to Thomson Reuters/Freeman Consulting, bookrunning fees from global syndicated loans totaled US$16.5 billion during full year 2015, a decrease of 11% from last year. Fees from leveraged lending decreased 22% compared to a year ago and accounted for 62% of all lending fees during full year 2015.