Banks from HSBC to Royal Bank of Scotland are underwriting sterling loans at the fastest pace since the financial crisis as companies shun the UK’s bond market and turn to traditional lenders instead to borrow in that currency.

Syndicated loans - cash lent to companies, typically by a club of banks - denominated in sterling have surged to £44 billion this year, more than double what was borrowed a year ago and the most at this point in the calendar since 2007, according to data provider Dealogic. Meanwhile, sterling-denominated corporate bond issuance has slumped to £9 billion this year, a drop of more than 40% on 12 months ago and the lowest amount in five years, Dealogic data shows.