• Financing
    • Enable growth

Opening up a world of opportunity for our clients' ambitions on the global Leveraged Loan markets

The start of 2023 saw an improvement in market conditions, following macroeconomic challenges in 2022. This allowed corporate clients to access more financing options than last year.

Leading the opening of the European Leveraged Loan market in 2023

HSBC has been at the forefront of the market helping companies across Europe, with solutions to extend their debt maturities to de-risk balance sheets and allow greater operational flexibility in the years ahead. Providing clients with seamless access to markets has been key over recent months. Creativity and client-centricity have been at the heart of HSBC’s strategy, with the bank delivering complex financings for a variety of transactions across maturity extensions, refinancings as well as more strategic solutions.

Our support to clients and impact on the market have translated in many ways:

  • HSBC re-opened the leveraged loan market this year with a USD 2.2 billion equivalent debt extension for Nord Anglia, the largest transaction for a private equity backed company since May 2022.
  • HSBC was one of the most active banks in the leveraged loan market, bookrunning over 50% of all leveraged loan deals in 2023.
  • HSBC has specialised in negotiating debt maturity extensions with investors and has bookrun over 80% of “Amend and Extend” transactions launched so far this year.
  • HSBC has placed over EUR 8 billion for European clients in the leveraged finance market already this year, attracting demand in excess of EUR 15 billion.

Source: HSBC data as at February 2023

In addition, HSBC leveraged its global platform to lead the market in cross-border transactions, securing a Global Coordinator/Bookrunner role on five out of the seven deals completed so far in 2023 (Source: HSBC data as at February 2023). This includes a EUR 2.6 billion equivalent refinancing transaction for Ineos, which also marked the first cross-border high yield bond issue since January 2022.

"With the deep market insight we have gained from these transactions, we are well placed to advise clients on how best to navigate the market, to develop tailored solutions and to provide best-in-class execution. It is encouraging to start the year by delivering positive outcomes for our clients. The mandates we won are the result of our long-standing relationships with key clients who have been entrusting us as their capital markets partner for years,” says Paul Cahalan, Head of Leveraged and Acquisition Finance EMEA at HSBC.

With the new normal of heightened volatility, timing the market and having high conviction on how credit stories are positioned will be key to driving best execution

Tim Spray | Global Head of Leveraged and Acquisition Finance Syndicate, HSBC

Did you know?

HSBC was named Loan House of the Year in the 2022 IFR Asia awards. IFR described HSBC as a 'truly diversified, global loan house' - for 'underwriting event-driven financings, delivering innovative solutions to borrowers and achieving breakthroughs in distribution.

According to IFR, the bank's success in the Asia Loan House of the Year award was notable, not just for the quality of deals completed, but for the resilience HSBC demonstrated in challenging market conditions, stepping up to support clients to navigate uncertainties.

Leading the way on Asian Leveraged Loan markets

The Asian loan market was not immune to the macroeconomic and geopolitical challenges throughout 2022, however, it remained receptive to high quality credits and repeat issuers in select sectors. Leveraging its leadership position in the Asian loan market, HSBC was able to help clients navigate through these uncertainties and to provide them with bespoke financing solutions.

2022 saw HSBC put the full suite of debt solutions to work, including bank debt, institutional TLB and private credit, driving the increasing acceptance of TLB in the Asia market and successfully connecting Asian liquidity with the US and European markets to facilitate landmark cross-border transactions

Rachel Watson | Co-Head of Leveraged and Acquisition Finance APAC at HSBC

Ensuring seamless distribution is another key aspect of HSBC’s LAF proposition which has proved critical, especially to financial sponsors engaged in leveraged buyouts and dividend recapitalisations.

HSBC has also embedded ESG into its broad capital markets offering, which allows them to leverage their capabilities in the loan markets and their ESG expertise to support borrowers on their transition journeys. HSBC successfully led mandates with a sustainable financing angle across various sectors and markets, including the largest Sustainability-linked loans from the property sector in Asia for Hong Kong’s Link REIT, at HKD 12 billion (USD 1.53 billion).

“Innovation and a client centric approach are the key drivers of our proposition. We were able to provide tailor-made solutions for our clients’ financing needs, and to help them in their ESG transition journey with sustainability-linked solutions,” says Ashish Sharma, Co-Head of Leveraged and Acquisition Finance and Head of Loan Syndications, APAC at HSBC.

Our clients ambitions on the global Leveraged Loan markets

Opening a world of opportunity in Capital Markets

At HSBC, we understand that our clients' needs evolve and grow to adapt to market conditions, to meet new business requirements and to stay relevant in their respective sector.

Need help?

For more information, please contact your HSBC representative.