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European Syndicated Loan Volume $bn (1 Jan - 6 May)

May 6, 2016

By Aghogho Ejuoneatse

$189.3bn: European loan volume in 2016 YTD

European syndicated loan volume of $189.3bn in 2016 YTD has dropped 49% from $371.4bn in the same 2015 period, to the lowest YTD level since 2002 ($119.3bn). Volumes in 2014 ($376.9bn) and 2015 are the fourth and fifth highest YTD totals on record, respectively, behind 2007 ($658.4bn), 2006 ($431.1bn) and 2005 ($397.7bn)

On March 7, 2016, CNAC Saturn (NL) BV signed a $20.2bn facility, the second largest European leveraged loan on record behind the cancelled $24.3bn facility by Olivetti in April 1999. Proceeds are to support the pending $46.4bn acquisition of Syngenta by the borrower’s parent company, China National Chemical Corp – ChemChina

Although European acquisition related volume of $78.3bn is down 35% from $120.7bn in 2015 YTD, acquisition related facilities account for a 41% share of the market, the highest YTD share since 2008 (53%)

Leveraged Loan volume falls 27% year-on-year

European leveraged loans total $63.5bn via 100 deals in 2016 YTD, down 27% on the $87.5bn borrowed via 184 deals in 2015 YTD, and lowest YTD volume since 2012 ($59.7bn)

Leveraged loans capture a 34% share of total European loan volume in 2016 YTD, up 10 percentage points year-on-year and the largest YTD market share since 2007 (40%)

Average maturity on European leveraged loans stands at five years and eight months, up from five years and six months in the previous YTD period and the longest YTD average since 2008 (six years and ten months)

12%: healthcare top sector in 2016 YTD

Leading volume in 2016 YTD, healthcare ($21.8bn) accounts for 12% of European loan volume in 2016 YTD, the second highest YTD share on record (15% in 1999). Chemicals ($21.3bn) follows, also capturing a record high 11% share of volume

UniCredit Leads European loan bookrunner ranking

UniCredit leads the European syndicated loan volume bookrunner ranking in 2016 YTD with a 7.8% market share. Barclays and Morgan Stanley follow with 7.4% and 6.7%, respectively