A syndicated loan is offered by a group of lenders who work together to provide credit to a large borrower. The borrower can be a corporation, an individual project, or a government. Each lender in the syndicate contributes part of the loan amount, and they all share in the lending risk. One of the lenders acts as the manager (arranging bank), which administers the loan on behalf of the other lenders in the syndicate. The syndicate may be a combination of various types of loans, each with different repayment terms that are agreed upon during negotiations between the lenders and the borrower.
The demand for syndicated loans is growing largely due to the requirement of huge amounts of funds by borrowers. It is generally difficult for single lenders to give a loan for such big amounts and therefore syndicate loan demand is growing among both borrowers and lenders. In addition, syndicate loan helps to equally distribute the risk sharing among all the lenders which reduces the burden of the lender, in case the borrower is unable to repay back the loan amount. These are some of the factors propelling the growth of the syndicated loans market. However, there are high chances of a syndicated loan becoming a bed debt, as such a huge amount is difficult to be repaid by the buyer and if the project fails for which the loan was taken, then the lenders have to face the loss. Therefore, lenders hesitate to lend money for syndicate loans. Thus, this is a major limiting factor for the syndicated loans market. On the contrary, there are a large number of megaprojects being developed, such as the construction of dams, road infrastructures, buildings and others for which a large sum of money is required. Syndicate loans are very useful in these cases as they finance such projects easily. Therefore, the large scale development of megaprojects is expected to provide lucrative growth opportunities for the syndicated loans market in the coming years.
The syndicated loans market is segmented on the basis of type, use of proceed, industry vertical and region. By type, it is segmented into term loan, revolving loan, underwritten transactions, and others. The term loan is further bifurcated into fixed-rate, floating-rate, and others. By use of proceed, it is bifurcated into working capital, acquisition financing, project finance, and others. By industry vertical, it is segregated into financial services, energy and power, high technology, industrials, consumer products and services, and others. By region, it is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
The report analyzes the profiles of key players operating in the syndicated loans market such as Acuity Knowledge Partners, Bank Handlowy w Warszawie S. A., Bank of China (BOC), Bank of the West, Capital One, CLAAS Group, EBRD, JPMorgan Chase & Co., Mizuho Bank, Ltd., Mitsubishi UFJ Financial Group, Inc., PT Bank BTPN Tbk, State Bank of India, The SILC Group, Truist, Union Bank of India., AXYON.AI, and HubX. These players have adopted various strategies to increase their market penetration and strengthen their position in the syndicated loans industry.
KEY BENEFITS FOR STAKEHOLDERS
- The study provides in-depth analysis of the global syndicated loans market along with the current & future trends to illustrate the imminent investment pockets.
- Information about key drivers, restraints, & opportunities and their impact analysis on the global syndicated loans market size are provided in the report.
- Porter’s five forces analysis illustrates the potency of buyers and suppliers operating in the industry.
- The quantitative analysis of the global syndicated loans market from 2022 to 2031 is provided to determine the market potential.
Key Market Segments
By Type
- Term Loan
- Revolving Loan
- Underwritten Transactions
- Others
By Use of Proceeds
- Working Capital
- Acquisition Financing
- Project Finance
- Others
By Industry Vertical
- Financials Services
- Energy and Power
- High Technology
- Industrials
- Consumer Products and Services
- Others
By Region
- North America
- U. S.
- Canada
- Europe
- UK
- France
- Germany
- Italy
- Spain
- Netherlands
- Rest Of Europe
- Asia-Pacific
- China
- Japan
- Australia
- India
- Singapore
- Rest Of Asia-Pacific
- LAMEA
- Latin America
- Middle East
- Africa
Key Market Players
- Acuity
- Bank Handlowy w Warszawie S. A.
- Bank of China
- Bank of the West (BNP Paribas)
- BTPN
- Capital One
- CLAAS Group
- EBRD
- JP Morgan & Chase
- Mizuho Bank, Ltd.
- MUFG
- State Bank of India
- The SILC Group
- Union Bank of India
Table of Contents
CHAPTER 1: INTRODUCTION1.1. Report description
1.2. Key market segments
1.3. Key benefits to the stakeholders
1.4. Research Methodology
1.4.1. Secondary research
1.4.2. Primary research
1.4.3. Analyst tools and models
CHAPTER 2: EXECUTIVE SUMMARY
2.1. Key findings of the study
2.2. CXO Perspective
CHAPTER 3: MARKET OVERVIEW
3.1. Market definition and scope
3.2. Key findings
3.2.1. Top investment pockets
3.3. Porter’s five forces analysis
3.4. Top player positioning
3.5. Market dynamics
3.5.1. Drivers
3.5.2. Restraints
3.5.3. Opportunities
3.6. COVID-19 Impact Analysis on the market
CHAPTER 4: SYNDICATED LOANS MARKET, BY TYPE
4.1 Overview
4.1.1 Market size and forecast
4.2 Term Loan
4.2.1 Key market trends, growth factors and opportunities
4.2.2 Market size and forecast, by region
4.2.3 Market analysis by country
4.3 Revolving Loan
4.3.1 Key market trends, growth factors and opportunities
4.3.2 Market size and forecast, by region
4.3.3 Market analysis by country
4.4 Underwritten Transactions
4.4.1 Key market trends, growth factors and opportunities
4.4.2 Market size and forecast, by region
4.4.3 Market analysis by country
4.5 Others
4.5.1 Key market trends, growth factors and opportunities
4.5.2 Market size and forecast, by region
4.5.3 Market analysis by country
CHAPTER 5: SYNDICATED LOANS MARKET, BY USE OF PROCEEDS
5.1 Overview
5.1.1 Market size and forecast
5.2 Working Capital
5.2.1 Key market trends, growth factors and opportunities
5.2.2 Market size and forecast, by region
5.2.3 Market analysis by country
5.3 Acquisition Financing
5.3.1 Key market trends, growth factors and opportunities
5.3.2 Market size and forecast, by region
5.3.3 Market analysis by country
5.4 Project Finance
5.4.1 Key market trends, growth factors and opportunities
5.4.2 Market size and forecast, by region
5.4.3 Market analysis by country
5.5 Others
5.5.1 Key market trends, growth factors and opportunities
5.5.2 Market size and forecast, by region
5.5.3 Market analysis by country
CHAPTER 6: SYNDICATED LOANS MARKET, BY INDUSTRY VERTICAL
6.1 Overview
6.1.1 Market size and forecast
6.2 Financials Services
6.2.1 Key market trends, growth factors and opportunities
6.2.2 Market size and forecast, by region
6.2.3 Market analysis by country
6.3 Energy and Power
6.3.1 Key market trends, growth factors and opportunities
6.3.2 Market size and forecast, by region
6.3.3 Market analysis by country
6.4 High Technology
6.4.1 Key market trends, growth factors and opportunities
6.4.2 Market size and forecast, by region
6.4.3 Market analysis by country
6.5 Industrials
6.5.1 Key market trends, growth factors and opportunities
6.5.2 Market size and forecast, by region
6.5.3 Market analysis by country
6.6 Consumer Products and Services
6.6.1 Key market trends, growth factors and opportunities
6.6.2 Market size and forecast, by region
6.6.3 Market analysis by country
6.7 Others
6.7.1 Key market trends, growth factors and opportunities
6.7.2 Market size and forecast, by region
6.7.3 Market analysis by country
CHAPTER 7: SYNDICATED LOANS MARKET, BY REGION
7.1 Overview
7.1.1 Market size and forecast
7.2 North America
7.2.1 Key trends and opportunities
7.2.2 North America Market size and forecast, by Type
7.2.3 North America Market size and forecast, by Use of Proceeds
7.2.4 North America Market size and forecast, by Industry Vertical
7.2.5 North America Market size and forecast, by country
7.2.5.1 U. S.
7.2.5.1.1 Market size and forecast, by Type
7.2.5.1.2 Market size and forecast, by Use of Proceeds
7.2.5.1.3 Market size and forecast, by Industry Vertical
7.2.5.2 Canada
7.2.5.2.1 Market size and forecast, by Type
7.2.5.2.2 Market size and forecast, by Use of Proceeds
7.2.5.2.3 Market size and forecast, by Industry Vertical
7.3 Europe
7.3.1 Key trends and opportunities
7.3.2 Europe Market size and forecast, by Type
7.3.3 Europe Market size and forecast, by Use of Proceeds
7.3.4 Europe Market size and forecast, by Industry Vertical
7.3.5 Europe Market size and forecast, by country
7.3.5.1 UK
7.3.5.1.1 Market size and forecast, by Type
7.3.5.1.2 Market size and forecast, by Use of Proceeds
7.3.5.1.3 Market size and forecast, by Industry Vertical
7.3.5.2 France
7.3.5.2.1 Market size and forecast, by Type
7.3.5.2.2 Market size and forecast, by Use of Proceeds
7.3.5.2.3 Market size and forecast, by Industry Vertical
7.3.5.3 Germany
7.3.5.3.1 Market size and forecast, by Type
7.3.5.3.2 Market size and forecast, by Use of Proceeds
7.3.5.3.3 Market size and forecast, by Industry Vertical
7.3.5.4 Italy
7.3.5.4.1 Market size and forecast, by Type
7.3.5.4.2 Market size and forecast, by Use of Proceeds
7.3.5.4.3 Market size and forecast, by Industry Vertical
7.3.5.5 Spain
7.3.5.5.1 Market size and forecast, by Type
7.3.5.5.2 Market size and forecast, by Use of Proceeds
7.3.5.5.3 Market size and forecast, by Industry Vertical
7.3.5.6 Netherlands
7.3.5.6.1 Market size and forecast, by Type
7.3.5.6.2 Market size and forecast, by Use of Proceeds
7.3.5.6.3 Market size and forecast, by Industry Vertical
7.3.5.7 Rest of Europe
7.3.5.7.1 Market size and forecast, by Type
7.3.5.7.2 Market size and forecast, by Use of Proceeds
7.3.5.7.3 Market size and forecast, by Industry Vertical
7.4 Asia-Pacific
7.4.1 Key trends and opportunities
7.4.2 Asia-Pacific Market size and forecast, by Type
7.4.3 Asia-Pacific Market size and forecast, by Use of Proceeds
7.4.4 Asia-Pacific Market size and forecast, by Industry Vertical
7.4.5 Asia-Pacific Market size and forecast, by country
7.4.5.1 China
7.4.5.1.1 Market size and forecast, by Type
7.4.5.1.2 Market size and forecast, by Use of Proceeds
7.4.5.1.3 Market size and forecast, by Industry Vertical
7.4.5.2 Japan
7.4.5.2.1 Market size and forecast, by Type
7.4.5.2.2 Market size and forecast, by Use of Proceeds
7.4.5.2.3 Market size and forecast, by Industry Vertical
7.4.5.3 Australia
7.4.5.3.1 Market size and forecast, by Type
7.4.5.3.2 Market size and forecast, by Use of Proceeds
7.4.5.3.3 Market size and forecast, by Industry Vertical
7.4.5.4 India
7.4.5.4.1 Market size and forecast, by Type
7.4.5.4.2 Market size and forecast, by Use of Proceeds
7.4.5.4.3 Market size and forecast, by Industry Vertical
7.4.5.5 Singapore
7.4.5.5.1 Market size and forecast, by Type
7.4.5.5.2 Market size and forecast, by Use of Proceeds
7.4.5.5.3 Market size and forecast, by Industry Vertical
7.4.5.6 Rest of Asia-Pacific
7.4.5.6.1 Market size and forecast, by Type
7.4.5.6.2 Market size and forecast, by Use of Proceeds
7.4.5.6.3 Market size and forecast, by Industry Vertical
7.5 LAMEA
7.5.1 Key trends and opportunities
7.5.2 LAMEA Market size and forecast, by Type
7.5.3 LAMEA Market size and forecast, by Use of Proceeds
7.5.4 LAMEA Market size and forecast, by Industry Vertical
7.5.5 LAMEA Market size and forecast, by country
7.5.5.1 Latin America
7.5.5.1.1 Market size and forecast, by Type
7.5.5.1.2 Market size and forecast, by Use of Proceeds
7.5.5.1.3 Market size and forecast, by Industry Vertical
7.5.5.2 Middle East
7.5.5.2.1 Market size and forecast, by Type
7.5.5.2.2 Market size and forecast, by Use of Proceeds
7.5.5.2.3 Market size and forecast, by Industry Vertical
7.5.5.3 Africa
7.5.5.3.1 Market size and forecast, by Type
7.5.5.3.2 Market size and forecast, by Use of Proceeds
7.5.5.3.3 Market size and forecast, by Industry Vertical
CHAPTER 8: COMPANY LANDSCAPE
8.1. Introduction
8.2. Top winning strategies
8.3. Product Mapping of Top 10 Players
8.4. Competitive Dashboard
8.5. Competitive Heatmap
8.6. Key developments
CHAPTER 9: COMPANY PROFILES
9.1 Acuity
9.1.1 Company overview
9.1.2 Company snapshot
9.1.3 Operating business segments
9.1.4 Product portfolio
9.1.5 Business performance
9.1.6 Key strategic moves and developments
9.2 Bank Handlowy w Warszawie S. A.
9.2.1 Company overview
9.2.2 Company snapshot
9.2.3 Operating business segments
9.2.4 Product portfolio
9.2.5 Business performance
9.2.6 Key strategic moves and developments
9.3 Bank of China
9.3.1 Company overview
9.3.2 Company snapshot
9.3.3 Operating business segments
9.3.4 Product portfolio
9.3.5 Business performance
9.3.6 Key strategic moves and developments
9.4 Bank of the West (BNP Paribas)
9.4.1 Company overview
9.4.2 Company snapshot
9.4.3 Operating business segments
9.4.4 Product portfolio
9.4.5 Business performance
9.4.6 Key strategic moves and developments
9.5 BTPN
9.5.1 Company overview
9.5.2 Company snapshot
9.5.3 Operating business segments
9.5.4 Product portfolio
9.5.5 Business performance
9.5.6 Key strategic moves and developments
9.6 Capital One
9.6.1 Company overview
9.6.2 Company snapshot
9.6.3 Operating business segments
9.6.4 Product portfolio
9.6.5 Business performance
9.6.6 Key strategic moves and developments
9.7 CLAAS Group
9.7.1 Company overview
9.7.2 Company snapshot
9.7.3 Operating business segments
9.7.4 Product portfolio
9.7.5 Business performance
9.7.6 Key strategic moves and developments
9.8 EBRD
9.8.1 Company overview
9.8.2 Company snapshot
9.8.3 Operating business segments
9.8.4 Product portfolio
9.8.5 Business performance
9.8.6 Key strategic moves and developments
9.9 JP Morgan & Chase
9.9.1 Company overview
9.9.2 Company snapshot
9.9.3 Operating business segments
9.9.4 Product portfolio
9.9.5 Business performance
9.9.6 Key strategic moves and developments
9.10 Mizuho Bank, Ltd.
9.10.1 Company overview
9.10.2 Company snapshot
9.10.3 Operating business segments
9.10.4 Product portfolio
9.10.5 Business performance
9.10.6 Key strategic moves and developments
9.11 MUFG
9.11.1 Company overview
9.11.2 Company snapshot
9.11.3 Operating business segments
9.11.4 Product portfolio
9.11.5 Business performance
9.11.6 Key strategic moves and developments
9.12 State Bank of India
9.12.1 Company overview
9.12.2 Company snapshot
9.12.3 Operating business segments
9.12.4 Product portfolio
9.12.5 Business performance
9.12.6 Key strategic moves and developments
9.13 The SILC Group
9.13.1 Company overview
9.13.2 Company snapshot
9.13.3 Operating business segments
9.13.4 Product portfolio
9.13.5 Business performance
9.13.6 Key strategic moves and developments
9.14 Union Bank of India
9.14.1 Company overview
9.14.2 Company snapshot
9.14.3 Operating business segments
9.14.4 Product portfolio
9.14.5 Business performance
9.14.6 Key strategic moves and developments
Executive Summary
According to this report, titled, 'Syndicated Loans Market,' the syndicated loans market was valued at $1018.72 billion in 2021, and is estimated to reach $3798.4 billion by 2031, growing at a CAGR of 14.2% from 2022 to 2031.The participation of multiple lenders in a syndicated loan to finance a borrower’s project is a reinforcement of the borrower’s good market image. Borrowers that have successfully paid broadly syndicate online loans in the past elicit a positive reputation among lenders, which makes it easier for them to access credit facilities from financial institutions in the future. Furthermore, the borrower is not required to meet all the lenders in the syndicate to negotiate the terms of the loan. Rather, the borrower only needs to meet with the arranging bank to negotiate and agree on the terms of the loan. The arranger then does the work of establishing the syndicate personal loan, bringing other lenders on board, and discussing the loan terms with them to determine how much credit each lender will contribute.
Furthermore, major market players are undertaking various strategies to increase the competition and offer enhance services to their customers. For instance, in February 2022, Symphony, a leading markets’ infrastructure and technology platform partnered with Digital Asset, a software and services provider that helps enterprises build economic value through interconnected networks, to generate efficiency and remove manual processes in the broadly syndicated loans (BSL) market. Moreover, Symphony and Digital Asset have created a straight through processing (STP) workflows aimed at tackling information mismatch, trade breaks, human errors and the lack of appropriate collaboration tools in the syndicated loans space. These syndicated loans market trends by the market players will provide major lucrative opportunities for the syndicated loans market growth.
On the basis of use of proceed, the working capital segment is the highest growing segment attributed to the fact that a working capital loan can be an effective way to remain agile as an organization and respond to unforeseen opportunities by securing syndicated leveraged finance. In addition, cyclical or seasonal business models can be boosted by working capital loans, with the loan financing immediate operational expenses during low-revenue periods. Furthermore, working capital loans are used to help company’s bridge financial gaps, such as the time delay between the collection of accounts receivable and the need to repay debt or accounts payable.
Based on region, North America attained the highest growth in 2021. This is attributed to the rise in the exponential growth of medium and large size enterprises across the North America. In recent years, there has been significant focus on the development of technological solutions (such as distributed ledger technology (DLT) and smart contracts) for the syndicated loan market with the aim of improving the negotiation, execution, administration and trading of loans ideally through the adoption of single platform solutions in North America.
The COVID-19 pandemic had a negative impact on the syndicated loans market, since large scale development of projects were hindered due to the implement of lockdown, and projects were put on hold or were cancelled which incurred huge losses for the borrowers as well as lenders. Moreover, as the pandemic negatively impacted the economy, lenders were hesitant to finance any project in a syndicate online loan due to fear of incurring losses. Thus, the pandemic had a negative impact on the syndicated loans industry.
Key findings of the study
By type, the term loan segment led the syndicated loans market size in terms of revenue in 2021.By industry vertical, the financial services segment accounted for the highest syndicated loans market share in 2021.
By region, North America generated the highest revenue in 2021.
The key players profiled in the syndicated loans market analysis are Acuity Knowledge Partners, Bank Handlowy w Warszawie S.A., Bank of China (BOC), Bank of the West, Capital One, CLAAS Group, EBRD, JPMorgan Chase & Co., Mizuho Bank, Ltd., Mitsubishi UFJ Financial Group, Inc., PT Bank BTPN Tbk, State Bank of India, The SILC Group, Truist, Union Bank of India., AXYON.AI, and HubX. These players have adopted various strategies to increase their market penetration and strengthen their position in the industry.
Companies Mentioned
- Acuity
- AXYON.AI
- Bank Handlowy W Warszawie SA
- Bank of China
- Bank of the West (Bnp Paribas)
- Btpn
- Capital One
- Claas Group
- Ebrd
- HubX
- JP Morgan & Chase
- Mizuho Bank, Ltd.
- Mufg
- State Bank of India
- The Silc Group
- Union Bank of India
Methodology
The analyst offers exhaustive research and analysis based on a wide variety of factual inputs, which largely include interviews with industry participants, reliable statistics, and regional intelligence. The in-house industry experts play an instrumental role in designing analytic tools and models, tailored to the requirements of a particular industry segment. The primary research efforts include reaching out participants through mail, tele-conversations, referrals, professional networks, and face-to-face interactions.
They are also in professional corporate relations with various companies that allow them greater flexibility for reaching out to industry participants and commentators for interviews and discussions.
They also refer to a broad array of industry sources for their secondary research, which typically include; however, not limited to:
- Company SEC filings, annual reports, company websites, broker & financial reports, and investor presentations for competitive scenario and shape of the industry
- Scientific and technical writings for product information and related preemptions
- Regional government and statistical databases for macro analysis
- Authentic news articles and other related releases for market evaluation
- Internal and external proprietary databases, key market indicators, and relevant press releases for market estimates and forecast
Furthermore, the accuracy of the data will be analyzed and validated by conducting additional primaries with various industry experts and KOLs. They also provide robust post-sales support to clients.
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