RLPC-EMEA lending totals $635.5 bln in first nine months
LONDON, Sept 30
LONDON, Sept 30 (Reuters) - Syndicated lending in Europe, the Middle East and Africa (EMEA) was up 16 percent year on year to $635.5 billion despite the scarcity of revenue generating M&A financing, Thomson Reuters LPC data shows.
Competition between banks led to further falls in pricing for highly rated borrowers and to renewed demand for investment grade refinancing, helping to offset the subdued corporate M&A volume, while increased levels of activity in the leveraged market also boosted volume in the quarter.
"There is a different mood from the beginning of the year, now it's a lot more positive, there's a lot more good news about. Banks funding costs have come down, the loan market is liquid while the bond market is very strong," a senior banker said.
Despite the improved sentiment and banks' eagerness to underwrite deals, large ticket M&A has remained largely absent and volumes are down on the previous quarter across all regions.
Third quarter volume of $205.6 billion was 2.5 percent higher than the $200.5 billion seen in the second quarter, and 11 percent lower than the first quarter of 2013.
Loan volume in Western Europe increased 28 percent to $176 billion in the third quarter compared to the second quarter. Lending in Central and Eastern Europe sank 40 percent to $14.6 billion in the third quarter, while Africa and Middle East saw falls of 23 percent and 55 percent, to $6.9 billion and $8 billion, respectively. (Editing by Christopher Mangham)
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