UK Corporate Borrowing at Five-year High

UK corporate debt issuances to date in 2012 have reached £53.4bn (US$85.2bn), the highest figure since the beginning of the credit crunch five years ago and a 70% increase on the figure of US$50.1bn at the same stage in 2011, according to data from consultancy and technology group Dealogic.

It also reported that A-grade corporate debt issues show a year-on-year increase of 67%, while issues of investment grade corporate bonds rated BBB or higher by credit agencies this year have exceeded the previous record reached in 2009 by 16%.

According to Dealogic the UK accounts for 21% of European corporate investment grade issue volumes since the beginning of 2012, against a peak of 30% of 2008. It shows Barclays as the leading UK bookrunner, with an 11.3% market share, followed by The Royal Bank of Scotland (RBS) with 10.6% and HSBC with 8.8%.

Separate data issued by Dealogic shows US sales of Latin American corporate bonds also buoyant, with the figure for the first 10 months of 2012 at US$68.4bn already surpassing the full-year total for 2011 of US$58bn.

Latin American companies have been drawn to the US market as its low borrowing rates contrast with higher rates in their home markets.