Global syndicated lending hits US$2.1 trillion

Global Syndicated lending activity increased 8.6% compared to the first half of 2016, totaling US$2.1 trillion from 4,605 transactions. The United States contributed the largest share of the global market, with US$1.3 trillion in loan volume, representing 60% of overall proceeds. Lending in the United Kingdom increased 48% compared to the same period last year, totaling US$111.6 billion.

Acquisition financing triples in consumer staples, industrials, and telecom

Acquisition financing in the Consumer Staples, Industrials, and Telecommunications industries tripled compared to the same period in 2016, with notable M&A borrowing by British American Tobacco and Reckitt Benckiser. Despite the significant uptick in loan volume, the number of loans in these sectors remained flat. United Kingdom acquisition financing increased eightfold compared to last year, with US$64.6 billion in completed loans.

Americas lending up 24% from 2016

American loans totaled US$1.4 trillion, representing 65% of global loan volume in the first half of 2017. European lending activity increased 5% year-over-year, with US$399.2 billion from 586 loans. Asia-Pacific loan activity decreased 23% compared to last year, with US$204.7 billion in transactions. Japanese syndicated loan volume decreased 3% compared to the first half of 2016, with US$116.4 billion in loans.

Energy, financials and industrials lending account for 42% of total volume

Borrowing in the Energy sector totaled US$323.5 billion during the first half of 2017, down 5% compared to last year. Financials loan activity increased 5%, totaling US$310.6 billion during the opening six months of 2017. Industrials lending activity reached US$259.8 billion, down 4% compared to same period last year. Borrowing activity in the Telecommunications industry increased 82% compared to a year ago, with US$94.1 in deal volume.

Relative stability at the top of the bookrunner rankings

Bank of American Merrill Lynch maintained the top ranking for global bookrunners during the first half of 2017, capturing 9% of the global syndicated loans market share with US$184.6 billion from 700 transactions. JP Morgan retained the second spot with US$158.9 billion in loans, representing an 8% market share. Citi and Wells Fargo retained their third and fourth ranks, respectively, and Barclays climbed two spots to fifth.

Syndicated lending fees up 23%

Estimated bookrunner fees increased 23% compared to the previous year, with US$8.6 billion in total fees earned. Total fees for the top five banks during the first half of 2017 increased 6% compared to last year, totaling US$2.1 billion, despite a collective loss of 3.6 market share points.

 

Source: Thomson Reuters