European banks seek to shorten standard loan maturity to three years

virtual_meeting_Adobe_575x375.jpg
By Mike Turner
24 Sep 2020

The standard maturity for European investment grade corporate loans has been reduced from five years to three in the wake of the coronavirus crisis, and senior lenders say they are eager to try and maintain the new shorter maturity.

A five year maturity with two one year extension options —known as a five plus one plus one — has been the standard structure for revolving credit facilities in Europe’s syndicated loan market for years. 

Now, after banks extended tens of billions of short-term loans during the depths of the ...

Already a subscriber?

Continue reading this article

Try full access to GlobalCapital

Free trial