Citi and ABN Amro have become two of the first investment banks to suffer from the exodus of investors in risky leveraged buyout debt after they failed to syndicate more than €1bn ($1.5bn) of senior loans to refinance a Dutch retailer.

The banks were charged with syndicating a €1.1bn all-senior loan to refinance Amsterdam-based DIY retailer Maxeda, owned by Kohlberg Kravis Roberts. The pair were left to foot the entire bill after secondary investors rejected aggressive terms set by the private equity backers.