ManagementMania AppMania EduMania JobMania BusinessPages


What is Syndicated Loan
Syndicated Loan is a term that refers to a long-term credit provided by a group of banks under uniform conditions.

Syndicated Loan is a term that refers to a long-term credit provided by a group of banks under uniform conditions. One of the banks has the role of a leading bank, it organizes the involvement of other banks, contract, drawing, control, interest payments and principal repayments.

The syndicated loan is closed on the financial volume, which can not be provided by one bank (due to internal regulations, external regulation and high risk for the creditor). It is also advantageous for the borrower that then manages only one loan rather than several loans from different banks. The disadvantage of this loan is its low flexibility, difficult changes in conditions during drawing and higher fees.

Members of the syndicate can usually assign their part of financing to other financial institution, in some cases, but when the contract does not allow this - then the loan is called club loan.

Syndicated Loan in practice: The syndicated loan is intended primarily for large and mid-sized organizations in situations where the required financial volume exceeds the possibility of a creditor.

Related terms and methods:

Related industry / sector:

Related management field:

previous next
Did this article help you?
Rating:
Last update: 16.08.2016

Comments



You cannot contribute to the discussion because it is locked


Related consulting companiesmore...