UPDATE 1-RLPC-Gas Natural's 19 bln euro loan to launch next week

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By Zaida Espana

LONDON, Aug 28 (Reuters) - Spanish utility Gas Natural's (GAS.MC) 19 billion euro ($28.1 billion) loan will launch to a wider syndication early next week, banking sources said on Thursday, joining a congested syndicated loan market.

Gas Natural's loan, which backs the purchase of a majority stake in Union Fenosa (UNF.MC), will provide financing for the acquisition including an aval -- a guarantee required by Spanish stock market regulator CNMV -- and will refinance existing debt.

It will be competing for commitments with around $85 billion of large M&A loans in syndication in an illiquid loan market.

These include a $45 billion loan backing Belgian brewer InBev'S INTB.BR acquisition of Anheuser-Busch (BUD.N), a $14 billion loan backing BG Group's (BG.L) bid for Origin Energy (ORG.AX) and a 16.1 billion euro loan backing Schaeffler's acquisition of Continental AG (CONG.DE).

The recent run of large acquisitions has produced $209 billion of M&A loans in the year to date, or just under half of all lending in Europe, the Middle East and Africa of $571 billion, according to data from Reuters Loan Pricing Corp.

A bank meeting for Gas Natural's loan, which is being arranged by Barclays, BNP Paribas, Caja Madrid, Citigroup, ING, La Caixa, Royal Bank of Scotland, Santander, Societe Generale and co-ordinator UBS, will be held in Barcelona in mid September, a banker said.