Market risk speeds InBev's $45 billion loan launch

By Tessa Walsh

LONDON (Reuters) - Belgian brewer InBev NV's $45 billion loan backing its bid for Anheuser-Busch Cos Inc (BUD.N) is racing towards syndication as bankers nervously eye a welter of jumbo M&A loans yet to hit a strained market.

"The loan is likely to be syndicated very soon, as in days," a syndicate head at one of InBev's INTB.BR arranging banks told Reuters LPC, adding that no final decision had yet been taken on dates for the launch or the London bank meeting.

The rapid syndication of InBev's massive $45 billion loan shows the start of a second-half dash to grab banks' dwindling cash. InBev's loan is one of several huge M&A loans that are awaiting syndication and is first to market to beat the summer slowdown.

These include BHP Billiton Plc/Ltd's (BHP.AX) (BLT.L) $55 billion loan backing its bid for rival Rio Tinto Plc (RIO.L), an 11.5 billion pounds ($22.8 billion) loan for France's EDF (EDF.PA) backing its bid for British Energy Group Plc BGY.L and a loan backing BG Group Plc's (BG.L) $13.1 billion bid for Australia's Origin Energy Ltd (ORG.AX).

Bankers are crossing their fingers and hoping that nothing worse than the usual 50-50 probability of success will apply to the M&A bids. France Telecom's (FTE.PA) $20 billion loan backing its bid for TeliaSonera (TLSN.ST) disappeared when it withdrew its $40 billion offer on Monday.

The convergence of jumbo loans is still making bankers nervous as the loan market is potentially facing its biggest cash call at a time when it can least afford it. Bank liquidity is dropping and serious questions remain around loan market capacity.

"The loan market is under pressure. It's simple liquidity -- there isn't very much and its availability is shortening. There is less cash in the system than there has been for a long time and the market's facing loads of jumbo loans," a loan syndicate head said.

InBev has already bolstered its loan by adding a further two arranging banks to the lineup -- Bank of Tokyo Mitsubishi and Mizuho -- which join Banco Santander, Barclays Capital, BNP Paribas, Deutsche Bank, Fortis, ING, JP Morgan and Royal Bank of Scotland. It has already paid its arranging banks $50 million in commitment fees.