Key facts
- Global syndicated loan activity decreased by 5.1% year-on-year in the first half of 2025.
- The APAC ex-Japan region experienced a 10.1% decline in syndicated loan volume during the same period.
- Australia recorded a 30.7% year-on-year increase in syndicated loan volume, driven by large transactions.
- Green loan issuance in the APAC ex-Japan region grew by 68.3% year-on-year.
- Greater China saw a 34.5% decrease in syndicated loan issuances, with over half used for refinancing.
- ASEAN borrowers increased their syndicated borrowing by 25.3% year-on-year.
- Japanese megabanks are playing a leading role in U.S. syndicated loans.
Global syndicated loan activity experienced a slowdown in the first half of 2025, with volumes declining 5.1% year-on-year. Despite this, the period still represented the second-highest activity level in a decade. However, the Asia-Pacific region excluding Japan (APAC ex-Japan) saw its third consecutive first-half decline, with volume falling 10.1% and contracting by approximately one-third compared to the first half of 2022.
Australia emerged as a bright spot within the APAC ex-Japan market, posting a 30.7% year-on-year increase in syndicated loan volume. This growth was primarily fueled by larger transactions, with 24 deals exceeding AUD 1 billion, a significant rise from 12 in the prior year. Project finance surged by 81.4%, notably including Connecting Orana Finco Pty Ltd’s AU$7.4 billion green loan. Acquisition finance also jumped 138.2%, boosted by TPG Telecom’s refinancing of its takeover financing.
The APAC-ex Japan green loan market demonstrated robust growth, increasing by 68.3% year-on-year. This expansion has led the region to account for 34% of global green loan issuance, a substantial increase from 5.9% a decade ago. Australia led this segment, followed by Singapore and mainland China, which saw increased demand for ESG-aligned financing.
In contrast, Greater China's syndicated loan issuances fell by 34.5% to USD 82.9 billion in H1 2025. Borrowers showed caution, with 55% of loans supporting refinancing efforts. Project finance and general corporate purposes accounted for 14% and 12% of the volume, respectively. The popularity of HKD-denominated loans increased, representing 34.8% of Greater China's volume, with a notable rise in Euro-denominated loans, particularly in the offshore market.
ASEAN borrowers bucked the broader regional trend, with syndicated borrowing increasing by 25.3% year-on-year to USD 42.9 billion. General corporate purposes and refinancing were primary uses, but issuance for real estate and sustainable purposes also rose. The declining share of refinancing suggests a greater focus on ESG and development financing.
Meanwhile, Japanese megabanks are reportedly leading a growing share of U.S. syndicated loans, contributing to Japan Inc.'s overall record high in syndicated lending.