loan syndication


Also found in: Financial.

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 loan syndication is led by CTBC Bank, Bank of Taiwan, Mega International Commercial Bank and Land Bank of Taiwan.
Tenders Are Invited for Provision of EU loan syndication and its impact on competition in credit markets.
member of the World Bank Group, is investing US$20 million in Indomina, and facilitating US$ 10 million through a loan syndication in the international banking market.
M2 EQUITYBITES-April 25, 2012--CCB, ICBC, Mizuho join Kingboard's loan syndication deal(C)2012 M2 COMMUNICATIONS http://www.
BANKING AND CREDIT NEWS-April 25, 2012--CCB, ICBC, Mizuho join Kingboard's loan syndication deal(C)2012 M2 COMMUNICATIONS http://www.
Dubai A combination of factors such as rising debt maturities, high volatility in global markets and the absence of European banks from the loan syndication market is expected to increase the refinancing risk in the Gulf region, according to rating agency Standard & Poor's and independent analysts.
With a view to expand their operations, state-backed lenders in the country have set their eyes on the INR3tn loan syndication market.
Furthermore, companies that might normally oppose loan syndication are agreeing to the bankers' conditions in the hopes the terms will either not be exercised or will be done in close consultation with their bankers.
On the bank side, the economics of a typical bank loan syndication do not differ essentially from the economics of a best-efforts securities underwriting.
Fatovic will report to Jeff Ferrell, Managing Director and Head of the Loan Syndication Sales and Trading for the Americas.
Global Banking News-August 25, 2017--New sanctions on Russia affect Intesa loan syndication plan
In his new role, he would supervise Afreximbanks loan syndication and distribution function as well as the agency and security trustee function.