European Chart of the Week: 16th June
Year-to-date institutional loan issuance has outpaced 2019 volumes by 11%, with deal flow totaling EUR 48bn despite the slowdown in issuance in recent months due to the COVID-19 pandemic. The strong start to 2020 has driven the year-to-date figures, with January and February accounting for 78% of deal flow.
Looking at overall leveraged loan issuance, at EUR 88.9bn year-to-date volume is 1% ahead of the 2019 level. New money leveraged loan issuance is currently 4% ahead of the corresponding period last year, despite the recent decline in M&A activity. The pandemic has increased the need to shift funding to general corporate purposes as businesses fight to keep afloat.
Focusing on institutional loan activity so far in 2Q20, issuance has fallen sharply by 74% from the same period last year, totaling just EUR 5.9bn. As lockdown measures start to ease, the June to date figure of EUR 6bn resembles last year’s volume, down just 3%. France’s Financiere CEP priced a EUR 725bn term-loan B backing its LBO transaction, kick-starting June volumes. Lenders are hopeful that the recent activity signals more issuers returning to the primary market soon.