Global Syndicated Loans Market Report and Forecast 2024-2032

Global Syndicated Loans Market Outlook

The global syndicated loans market size reached approximately USD 1.38 billion in 2023. The market is assessed to grow at a CAGR of 14.6% between 2024 and 2032 to attain a value of around USD 4.73 billion by 2032.

Key Trends in the Market

Syndicated loans, variously known as syndicated bank facilities, refer to the financing offered by a group of borrowers who work together to provide funds from one borrower such as sovereign governments or corporations, among others. Syndicating a loan allows lenders to mitigate the risk and take part in financial opportunities with a very large capital base.

• With the introduction of government initiatives aimed at creating a digital economy, businesses are increasingly adopting digital technologies. One of the key syndicated loans market trends includes the rising digital transformation. Digitisation can improve customer experience, optimise operations, centralise the flow of loans, reduce costs associated with regulations, compliances, and controls, and create a seamless lending experience.

• The growing adoption of technologies in corporate lending to enhance overall profitability is expected to bolster the syndicated loans market growth in the coming years. Technologies such as smart contracts and distributed ledger technology (DLT) are increasingly adopted to reduce the complexity associated with syndicated loans, eliminate the reliance on inefficient and expensive solutions and intermediates, and improve the negotiation and execution of loans.

• Moreover, there is an increasing deployment of artificial intelligence (AI) and automation to enhance the efficiency of syndicated loan services, analyse alternative data, automate payment flows and data, ensure compliance with various regulations, and enhance the reliability of the entire process.

Market Analysis

Based on loan type, the market is segmented into term loan, revolving loan, and underwritten transactions, among others. On the basis of use of proceeds, the syndicated loans market segmentation includes working capital, acquisition financing, and project finance, among others.

By industry vertical, the market divisions include financial services, energy and power, high technology, industrials, and consumer products and services, among others. The major regional markets for syndicated loans include North America, Europe, the Asia Pacific, Latin America, and the Middle East and Africa.

The comprehensive EMR report provides an in-depth assessment of the market based on the Porter's five forces model along with giving a SWOT analysis. The report gives a detailed analysis of the following key players in the global syndicated loans market, covering their competitive landscape and latest developments like mergers, acquisitions, investments and expansion plans.

• Bank Handlowy w Warszawie SA

• JPMorgan Chase & Co.

• Bank of China Ord

• The SILC Group

• State Bank of India

• Bank of the West (BNP Paribas)

• Mizuho Bank, Ltd.

• Acuity Knowledge Partners

• Capital One Financial Corp.

• Union Bank of India

• Others

Market Share by Industry Vertical

As per the syndicated loans market analysis, financial services account for a substantial portion of the market. Syndicated loans are widely used by financial corporations to fund large projects as well as merger and acquisition (M&A) activities. As financial service providers are increasingly seeking loans with flexible contractual terms and variable interest rates, the demand for syndicated loans is likely to rise in the forecast period.

Market Share by Region

North America represents a significant portion of the syndicated loans market share due to the growing number of small and medium-sized enterprises in the region. Increasing transparency and efficiency of syndicated lending is also favouring the regional market demand.

Besides, the Asia Pacific is expected to witness a healthy growth in the forecast period due to robust economic growth in countries like India and China, among others. Favourable government initiatives aimed at supporting the development of the non-public sector and private economy are also likely to fuel the demand for syndicated loans in the coming years.

Competitive Landscape

Union Bank of India is a leading public sector bank, and the Indian government holds 76.99% of the bank’s overall capital share. With its headquarters in Maharashtra, India, the company boasts a network of over 8,500 domestic branches and more than 10,100 ATMs in the country. It is one of the leading public banks that has implemented a 100% core banking solution and has established its position as a leader in digital banking, technology prowess, and financial services, among others.

State Bank of India is a prominent public financial services and banking company that is headquartered in Maharashtra, India. It is the largest Indian bank with more than 22,405 branches, 76,089 BC outlets, and 65,627 ATMs/ADWMs, serving more than 48 crore customers. It has also expanded its presence globally and operates 235 offices in 29 countries.

Mizuho Bank, Ltd. is a leading global bank that has the widest customer base in Japan. It was established in 2013 and since has developed an expansive network of business and financial centres. With its headquarters in Tokyo, Japan, some of its business areas are deposits, buying and selling of securities, foreign exchange transaction settlement, and lending, among others.

Other syndicated loans market players include Bank Handlowy w Warszawie SA, JPMorgan Chase & Co., Bank of China Ord, The SILC Group, Bank of the West (BNP Paribas), Acuity Knowledge Partners, and Capital One Financial Corp., among others.

Key Highlights of the Report