Syndicated lending in the EMEA region slumped to US$914bn in 2016, showing a 21% year-on-year fall, as refinancing activity tumbled and acquisitions remained patchy. Total EMEA volume in 2016 was the lowest since the US$703bn raised in 2012, as global economic and political developments made companies reluctant to brave market volatility.
Rising global and political risks will have most influence over the syndicated loan market in the next 12 months, according to a survey of its members conducted by the Loan Market Association as it celebrates its twentieth anniversary.
German drug and crop chemicals group Bayer’s US$57bn bridge loan backing its US$66bn acquisition of US seed company Monsanto launched last week. Banks looking to commit to the financing will be hoping that the company moves quickly to reduce the size of the loan.