After 2010 marked the slowest year for the loans market since 2004 in terms of volume according to Dealogic, syndicated loans bankers are optimistic that 2011 will bring new opportunities. Bankers expect to see continued competition from local banks, which was characteristic of 2010. Tenors are expected to grow, with more flexible terms and some spread compression in order to attract borrowers. “I expect to see pricing getting even tighter, driven by very liquid local players and markets,” says Michael Jakob, head of syndicated loans at Credit Suisse. Some market participants think pricing could tighten to 2007 levels. However, some worry that will be unsustainable, as European banks face high costs of funding because of the sovereign crisis. However, activity is expected in areas where syndicated loans are seen as an attractive choice. “We are starting to see a lot more strategic activity for acquisitions and capital expenditure and this will drive up syndicated loans volumes,” says Mario Espinosa, co-head of LatAm debt markets at Citi. Volume growth is expected in metals and mining, as well as oil and gas. “There is economic growth in all different kinds of sectors where LatAm has a significant strategic advantage, and which will attract significant interest from banks,” says Espinosa. “We expect to see retailers and food processing companies going to the market more.” Oil and gas should be busy in Brazil, fuelling syndicated loans to finance drill ships. “Brazil can’t finance these projects just with funds from the BNDES. There is a big capital requirement for rigs and the market in Brazil will have to open up to support this,” says a syndicated loans banker. Many projects that were put on hold during the crisis are expected to get underway in 2011. “Things are back on track, but still lagging,” says one head of loans syndication. “So project volume, which follows GDP, should go up, especially in power, toll roads and for the infrastructure needed by the mining i