Syndicated lending exceeds US$4.0 trillion for the fifth consecutive year
Global syndicated lending totaled US$4.6 trillion from 9,887 transactions during full year 2017, a 12% increase in proceeds and a 3% increase in number of completed loans compared to last year. Borrowing in United States captured 58% of global lending, reaching US$2.7 trillion, a 25% uptick compared to a year ago. Canada finished the year as the second largest loans market for the first time since our records began, totaling US$235.2 billion.
Acquisition financing activity down 6% compared to full year 2016
Total acquisition financing activity reached US$812.4 billion from 1,249 deals during full year 2017, a 6% decline in proceeds and a 5% increase in number of transactions. Retail companies raised US$109.2 billion in M&A financing, a five-fold percentage uptick compared to the previous year, and an all-time annual high bolstered by CVS’s US$49.0 billion bridge loan to acquire Aetna.
Americas lending up 25% compared to full year 2016
Syndicated lending in the Americas accounted for 65% of total proceeds during full year 2017, reaching US$2.9 trillion from nearly 5,000 transactions. European syndicated lending totaled US$816.3 billion, or 18% of global proceeds, down 1% compared to a year ago. Asia-Pacific lending totaled US$493.3 billion, down 3% compared to last year. The number of completed loan transactions in Europe and Asia-Pacific declined by 14% and 2%, respectively.
Borrowing in the financials sector reaches pre-financial crisis levels
The Energy and Power industry accounted for the largest share of the global lending market, capturing 16% of global deal volume with US$733.9 billion in completed loans. Borrowing in the Financials industry totaled US$668.1 billion from 1,502 transactions, the sector’s strongest full year performance since 2007. Syndicated lending for Retail companies registered a 53% uptick in proceeds compared to a year ago with US$277.2 billion in completed loans, the strongest growth of any sector.
Bank of America Merrill Lynch takes top spot in 2017 bookrunner rankings
Bank of America Merrill Lynch took the top ranking for global bookrunners, displacing JP Morgan as the top bookrunner for full year 2017, capturing 10% of the global syndicated loan market with US$398.2 billion from 1,404 transactions. Citi and Wells Fargo retained their third and fourth rankings, respectively, from a year ago. Barclays rounded out the fifth spot, climbing two spots from last year. Goldman Sachs climbed to the 6th rank, up five spots from a year ago.
Syndicated lending fees up 15% compared to last year
Estimated bookrunner fees increased 15% compared to full year 2016, totaling US$18.1 billion in fees. The top ten global bookrunners, by proceeds, earned a combined US$7.6 billion, representing a 42% of the total loan fee pool. Compared to full year 2016, the top five banks by proceeds lost a collective 3.7 points in wallet share.