The syndicated loans market has seen considerable growth due to a variety of factors.
• The syndicated loans market has grown rapidly in recent years. It will rise from $682.44 billion in 2024 to $782.79 billion in 2025, with a CAGR of 14.7%.
The growth is due to economic expansion, corporate mergers and acquisitions, changes in credit market conditions, global trade dynamics, and fluctuations in bank capital and liquidity.
The syndicated loans market is expected to maintain its strong growth trajectory in upcoming years.
• The syndicated loans market is expected to grow rapidly, reaching $1,342.3 billion by 2029 at a CAGR of 14.4%.
Growth is driven by interest rate trends, ESG factors, and increased investment in infrastructure. Trends include private equity involvement, infrastructure financing, and enhanced risk management practices.
Anticipations of a swell in the necessity for substantial loans are predicted to be a momentum for the syndicated loan market's expansion in the future. When we talk about significant loans, we're referring to an enormous quantity of money loaned to an individual or an organization, generally for significant investments or major ventures. The necessity for substantial loans has been escalating due to the expansion of businesses and considerable inputs in infrastructure and real estate. Syndicated loans aid these significant loans by amalgamating resources from multiple lenders, thus distributing risk and providing sizable capital to borrowers. For example, in March 2024, as per the British Business Bank plc, a UK-based finance company, there was a swell in the total flow of new business loans, which went from $75.01 billion (£57.7 billion) in 2021 to $75.776 billion (£59.2 billion) in 2023. This represents a two-year upsurge of $1.92 billion (£1.5 billion). Consequently, the rising demand for significant loans is fostering the development of the syndicated loan market.
The 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
Subsegments:
1) By Term Loan: Senior Term Loan, Subordinated Term Loan, Bridge Loan
2) By Revolving Loan: Multi-Currency Revolving Credit Facility, Single-Currency Revolving Credit Facility, Callable Revolving Loan
3) By Underwritten Transactions: Fully Underwritten, Best Efforts Underwriting
4) By Other Types: Asset-Backed Loan, Securitized Loan, High Yield Loan
Predominant businesses in the syndicated loan market are concentrating on creating advanced systems, inclusive of syndicated loan trading platforms, to provide trading procedures, live data, and analytics on a singular platform. A syndicated loan trading platform is a service or system that enables the purchase and sale of syndicated loans between investors and financial institutions. For example, in June 2024, Charles River Development Ltd., a technology systems and services company based in the US, collaborated with Octaura LL Trading Co. LLC, a US-founded firm offering an electronic syndicated loan trading service, to inaugurate a bi-directional interface that streamlines syndicated loan trading. This interface enables undisturbed amalgamation between trading platforms and loan management systems, promoting live data interchange and a more streamlined trading operation, therefore boosting precision and efficacy in syndicated loan trading.
Major companies operating in the syndicated loans market are:
• JPMorgan Chase & Co
• Banco Santander S.A
• Bank of China
• BNP Paribas SA
• ING Group N.V.
• Mitsubishi UFJ Financial Group Inc.
• Barclays PLC
• State Bank of India
• Sumitomo Mitsui Banking Corporation
• Deutsche Bank AG
• UniCredit S.p.A.
• Mizuho Financial Group Inc.
• Apollo Global Management Inc.
• Standard Bank Group Limited
• Union Bank of India
• Macquarie Bank Limited
• Stifel Financial Corp.
• Ares Management Corporation
• Toronto Dominion Securities
• Houlihan Lokey Inc.
• Credit Agricole CIB
• Brookfield Asset Management Inc.
• BMO Capital Markets
• William Blair & Company
• Bank Handlowy w Warszawie S.A.
• Acuity Knowledge Partners
North America was the largest region in the syndicated loans market in 2024. The regions covered in the syndicated loans market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.