Syndicated loans are loans provided by a group of lenders referred to as syndicates who work together to offer funds to a single borrower. This approach spreads the risk among multiple financial institutions, allowing for the provision of substantial funding that may be beyond the capacity of any single lender. Syndicated loans are typically used for significant corporate financing needs, such as mergers and acquisitions, large capital expenditures, or refinancing existing debt.
Syndicated Loans Global Market Report 2024 provides data on the global syndicated loans market such as market size, growth forecasts, segments and geographies, competitive landscape including leading competitors’ revenues, profiles and market shares. The syndicated loans market report identifies opportunities and strategies based on market trends and leading competitors’ approaches.
The syndicated loans market is expanding rapidly, projected to grow from $1,067.23 billion in 2023 to $1,201.24 billion in 2024 at a CAGR of 12.6%. Growth drivers include economic expansion, corporate mergers, favorable credit conditions, and global trade dynamics. The market is expected to increase to $1,935.96 billion by 2028, with a CAGR of 12.7%, as interest rates, environmental, social, and governance (ESG) considerations, and investment flows drive demand. Trends include higher infrastructure financing, private equity involvement, and risk management improvements.
The growing demand for large loans is expected to drive the growth of the syndicated loan market. Syndicated loans, which pool resources from multiple lenders to provide large sums of capital, are increasingly sought after due to growing business investments in infrastructure and real estate. The British Business Bank reported a rise in new business loans, with $75.776 billion in 2023, reflecting increased demand. As businesses and organizations seek large loans, the syndicated loan market is expected to continue growing.
Get Your Free Sample Of The Global Syndicated Loans Market ReportThe syndicated loans market covered in this report is segmented –
1) By Type: Term Loan, Revolving Loan, Underwritten Transactions, Other Types
2) By Use of Proceeds: Working Capital, Acquisition Financing, Project Finance, Other Use of Proceeds
3) By Industry Vertical: Financials Services, Energy and Power, High Technology, Industrials, Consumer Products and Services, Other Industry Verticals
In the syndicated loan market, companies are focusing on developing solutions to improve trading efficiency. For example, in June 2024, Charles River Development partnered with Octaura Trading to launch a two-way interface for syndicated loan trading. This interface facilitates seamless data exchange between loan management systems and trading platforms, improving accuracy and efficiency in the market.
North America was the largest region in the syndicated loans market in 2023. The regions covered in the syndicated loans market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.