Syndicated Loan

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Syndicated Loan

A large Eurocurrency loan from a group of international banks.

Syndicated Loan

A loan made by many lenders to a single borrower. Syndicated loans are made in large amounts that would be too big for one lender to handle. In many ways, a syndicated loan operates like an ordinary loan; there is an interest rate (fixed or floating) and a time until repayment is due. It may be a direct loan or a revolving line of credit or a combination of the two. However, syndicated loans are usually made on a best effort basis, meaning that if the lenders are unable to find enough capital or additional lenders to cover the amount requested, the amount borrowed will be less than anticipated. They are common in leveraged buyouts.

syndicated loan

a LOAN which is provided by a number of financial institutions on a collective basis, each subscribing a specified amount of money. Syndicated loans are usually put together by a ‘lead’ organization, for example, a commercial bank.
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The National Bank of Egypt (NBE) arranged and managed a number of new syndicated loans during the first nine months of 2015 worth EGP 40bn, according to NBE Deputy Chairman Mahmoud Montasser.
Ipreo's system combines settlement services and software with a pioneering advance that, for the first time, makes the practice of securities lending available for syndicated loans, enabling sellers to borrow syndicated loans to deliver on time to their buyers.
In recent years, by fully leveraging its unique advantages in syndicated loans and the powerful interbank distribution network, ICBC has successfully arranged syndicated loans for a large number of premium and major projects, and strongly supported the development of the real economy.
BNY Mellon (NYSE: BK), a company involved in investment management and investment services, has announced the launch of Alternative Loan Financing (ALF), a concept that provides an alternative structure for US syndicated loans to be used as eligible collateral in a wide range of financing transactions.
Ipreo is the only financial services provider to offer solutions across all asset classes including Equity, Fixed Income, Municipal bonds, and Syndicated Loans.
However, the syndicated loan market in China has recently been growing very rapidly and witnessed a sharp annual growth of 65% to US$37 billion in syndicated loans in the first three quarters.
The bank also lead a number of syndicated loans which received awards including Best syndicated loan in EMEA: Qatar Petroleum's funding, Best syndicated loan in the Middle East: ACWA Power's funding for Qurayyah IPP and Best syndicated loan in Africa: Kosmos Energy's $2 billion funding.
Summary: Syndicated loans in the Middle East and North Africa have plunged to the lowest level since 2004 as international lenders reduced participation because of the Arab uprisings, and falling yields encouraged companies to sell bonds.
Garanti Bank's CEO Ergun Ozen said after the signing ceremony in London that they proved their power in banking relations and their expertise in syndicated loans once again.
The current financial crisis has also impacted the market size and composition of syndicated loans, which are a unique type of commercial.
With their disposal of non-performing loans almost completed, Japanese banks are now focusing on syndicated loans, a form of lending that spreads risk among more than one bank and boosts fee income.
Several key factors have adversely affected the quality of syndicated loans over the past several years, including bank underwriting and risk selection standards and economic factors.