Study: European PP market reaches €6.4bn in 2014

The report showed that French deals still dominate the market and deals for under €50 million make up the largest share of transactions

Ratings agency Standard & Poor’s has teamed up with data provider Private Placement Monitor to produce a league table for the European private placement market. The first annual league table is topped in terms of volume by Morgan Stanley which arranged €1.34 billion for eight issuers in 2014.

Total issuance of European private placements (excluding German schuldschein, US private placements and non-agented deals) reached €6.4 billion via 87 deals, the report showed. France continued to dominate the developing European private placement market with 53 percent of deal flow, although the S&P report highlighted that the market is becoming pan-European with significant deal flow from Italy (20 percent) and Germany (15 percent). Countries also represented in the statistics included Belgium, the UK, the Netherlands and Sweden.

Though Morgan Stanley dominated the table when measured by volume, third-ranked Société Générale represented the largest number of issuers as it acted as agent for 11 borrowers. The league table top five comprised; Morgan Stanley (20.84 percent market share), Oddo & Cie (11 percent), Société Générale (10 percent), Crédit Agricole (six percent) and Natixis (six percent).

The report showed that the average deal size last year was €63 million with an average maturity of 6.6 years. Deals below €50 million made up 38 percent of the transactions while another 32 percent totalled between €50 million and €99 million.

The report and league table are the latest addition to a growing body of documents designed to support the growth of the European private placement market. In February a guide to the market was published by the Pan-European PP Working Group (PEPP WG) which is backed by a large number of trade bodies and investors.

The guide defines the main characteristics of a PEPP-compliant deal and how it differs from other financing options. The guide followed two different private placement documentation templates developed by the Loan Market Association and the French Euro PP working group. Both organisations are involved in PEPP WG which was co-ordinated by the ICMA.