A report by global deal tracking firm Dealogic pointed out that loan syndication by banks for Indian firms in the domestic and overseas market had already reached a total of $38.5 billion (Rs 1,77,110 crore) through 108 deals in 2009 so far--a 17 per cent growth over the corresponding period last year. This figure has surpassed the previous high of $ 38.1 billion in 2007.
A syndicated loan is a loan that is provided by a group of lenders and is structured, arranged, and administered by one or several commercial or investment banks known as arrangers. The lending risk is shared among institutions granting the loan.
For the first time, Indian syndicated loans were highest in Asia-Pacific and accounted for 23 percent of the region's volume.
Till now infrastructure sector has received the largest number of arranged loans with project financing constituting 78%of the total volume. An amount aggregating to $30.2 billion has been raised through 62 deals for project financing in 2009. It is greater than three times the $9.7 billion raised in the corresponding period last year.
The tracking firm revealed that volume of syndicated loans from Indian companies has surpassed that of Australia. Syndicated loans in Australia amounted to $36.1 billion.
Currently SBI capital market is the leading arranger with a deal share of 64 %. Other big arrangers include international banks like Deutsche and Citi with shares of 1.6 per cent and 1.2 per cent, respectively.