Debt Capital Markets Review February 2024

Despite a 0.1% uptick in December 2023, there has been a clear downward trajectory in cost of capital as inflation has fallen from a peak of 11.1% in September 2023 to 4.0% in December 2023.

As a result, the Bank of England has held base rates at 5.25% since August 2023 and Capital Economics forecasts that base rates will soften to 4.75% in 2024 and 3% in 2025.

Nevertheless, financial institutions continue to dictate the terms, scrutinising covenant headroom, challenging sensitivity scenarios and focusing on EBITDA ‘add-backs’.

Whilst it remains a ‘lenders’ market’, with many financial institutions having been cautious in deploying funds in 2023, there will be heightened pressure to put capital to use in 2024.

Leveraging the expertise of a knowledgeable debt adviser to support a quality proposal, with deep contacts in the lending community, is key to achieving a successful fundraise in this dynamic market.

To read the full report click here.

Share on:

Subscribe to receive our latest sector bulletins, thought leadership articles, deal completion reports and newsletters.

Read another insight

/ News
The UK Human Capital sector is entering a period of significant regulatory change, with reforms across employment rights, agency worker...
/ News
Gambit Corporate Finance LLP Debt Capital Markets Review for May 2026 examines the latest developments in the debt markets, providing insight...
/ News
The Education & Training sector is undergoing one of its most significant structural shifts in recent years, as evolving government...

Search Gambit Corporate Finance