Refinancing Drives EMEA Loan Market To Highest Level Since 2007 – Report

Total syndicated loan volumes across the EMEA region reached US$1.51 trillion in 2025, up 35.5 per cent from US$1.11 trillion a year earlier, based on LPC data. Refinancing was the dominant driver of activity as borrowers moved to manage upcoming maturities and take advantage of favourable market conditions.

Refinancing powers EMEA loan growth

Across EMEA, refinancing accounted for 54 per cent of total volumes, with US$816.4 billion of loans raised in 2025, a 37 per cent increase from US$598 billion in 2024. This trend reflected widespread efforts by corporates and sovereign-related borrowers to extend debt profiles amid global uncertainty.

Lending activity in the Middle East rose 34 per cent to US$110.8 billion, underlining the Gulf’s growing importance within the regional loan market. Borrowers in the GCC continued to access syndicated loans to support infrastructure projects and economic diversification programmes.

The year was marked by several large Gulf financings. Saudi Arabia’s Public Investment Fund completed a US$7 billion debut murabaha credit facility in January as part of its medium-term capital-raising strategy.

Later in the year, Abu Dhabi National Oil Company, in partnership with Eni and PTT Exploration and Production, secured an up to US$11 billion pre-export-style loan to monetise future gas production from the Hail and Ghasha projects.

While refinancing dominated activity, merger and acquisition financing across EMEA remained subdued. M&A-related loan volumes fell 11 per cent to US$167 billion in 2025, as anticipated large-scale acquisitions failed to materialise in a volatile environment.

In Europe, leveraged loan issuance exceeded US$442 billion, the highest level on record, with nearly 90 per cent driven by refinancing and repricing transactions.

The Gulf’s strong pipeline of sovereign, quasi-sovereign and corporate borrowers is expected to continue supporting loan market activity into 2026, even as expectations grow for a gradual recovery in acquisition-related financing.