loan syndication

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loan syndication

lending by a group. The size of some loans is so large that no single financial institution would possess either the resources or the inclination to lend the entire sum on its own. In such cases a syndicate of institutions is formed to provide the necessary funding. The syndication process starts when either a borrower approaches a bank and invites it to initiate arrangements for a syndication facility or when the bank itself approaches a corporate borrower that it believes is seeking funds. The bank (known as the managing bank) will then:
  1. (1) settle in outline with the company the financial and other terms on the basis of which the loan is to be promoted;
  2. (2) approach prospective lenders in the market and provide them with details of the proposed loan and information about the borrowers in order to enable a judgment to be made as to whether or not to participate; and
  3. (3) negotiate the details of the loan agreement with the borrower. Loan syndications, therefore, comprise two distinct sets of agreements: those governing the formation of and participation in the syndicate and those governing the relationship between the syndicate and the borrower, in effect, the loan agreement itself.
References in periodicals archive ?
The Asset-Based Lending team is led by Kate Lepak, SVP, Asset-Based Lending and the Syndications team is led by Ken Jamison, Managing Director, Loan Syndications.
The green loan for Seasons City (Phase 1), which will be on a five-year term, is to be aligned with the green loan principles issued by the Loan Market Association, the Asia Pacific Loan Market Association, and the Loan Syndications and Trading Association.
This partnership would provide world-class investment banking services covering mergers and acquisitions, advisory services, capital and bond issuance, loan syndications etc.
Kolosowsky brings more than 28 years of investment banking, debt capital markets, loan syndications, and credit underwriting experience supporting companies in the energy and power industries.
The author covers the bankAEs role in international letter of credit transactions, international bank loan syndications, the ring fencing of international deposits, international bank supervision, the global financial crisis, and many other related subjects over the course of the bookAEs ten chapters.
Common features of loan syndications are (1) big money, (2) a lead lender with the title of Administrative Agent handling the paperwork and managerial duties for the lender group, (3) multiple lenders, (4) provisions allowing co-lenders to come and go from the facility, (5) an electronic platform (such as IntraLinks) for sharing due diligence materials, loan documents and reports, (6) a lengthy credit agreement with provisions covering both imaginable and improbable occurrences, and (7) lots of tides (such as admin agent, arranger, underwriter, collateral agent, bookrunner, and syndication agent).
This area specializes in loan syndications, infrastructure and project finance as well as structuring capital markets transaction in the debt and equity arena - issuance and/ or listing of shares and Term Finance Certificates, as well as capital-related advisory services for corporate customers.
Mazzei joins Ladder from Bank of America, where he served as managing director and global head of the CMBS and Bank Loan Syndications Groups.
"Nearly 50 per cent of cross border loan syndications in the region comes from European banks.
Mark Garrick, MD, global head of Loan Syndications, NAB, said, 'As the figures suggest, we've seen more companies refinance this year and in particular an increase in event-driven financing as companies become more confident that the market will support them.
At Celtel, he raised equity and debt financing for the group--parent and subsidiaries--and arranged a total of $1bn medium term financing across sub-Saharan Africa through local and international loan syndications and bond issues.
The smallest participants in loan syndications -- including Japanese financial institutions and regional banks -- are no longer interested in participating for a paltry share of commitment fees.