syndicate

(redirected from Banking Syndicate)
Also found in: Dictionary, Thesaurus, Legal, Encyclopedia.

Syndicate

A group of banks that acts jointly, on a temporary basis, to loan money in a bank credit (syndicated credit) or to underwrite a new issue of bonds.

Syndicate

1. In banking, a group of banks that each lend an amount of money to a borrower, all at the same time and for the same purpose. The banks in a syndicate cooperate with each other for the duration of the project, even if they are otherwise competitors. Bank syndicates usually only lend large amounts of money. Every syndicate is a temporary arrangement.

2. In investment banking, a group of underwriters responsible for placing a new issue of a security with investors. As with banking syndicates, the members of an underwriting syndicate work together for the duration of the project. Every syndicate is a temporary arrangement. It is also called a purchase group or a selling syndicate.

syndicate

A combination of investment banking firms that bids on a new security issue and then sells it if the bid is successful. The syndicate disbands when the security offering has been completed. Syndicates are needed to spread the risk and obtain greater financial and marketing resources for large issues. Also called purchase group, underwriting syndicate. See also agreement among underwriters, breaking the syndicate, selling group.

syndicate

To distribute shares of ownership in a partnership or joint venture. For example, a brokerage firm may syndicate ownership in certain oil and gas properties.

Syndicate.

When a group of investment banks works together to underwrite and distribute a new security issue, they are acting as a syndicate.

Syndicates are temporary, forming to purchase the securities from the issuer and dissolving once the issue is distributed.

However, new syndicates, involving some of or all the same banks, form on a regular basis to underwrite each new issue. You may also hear these underwriting syndicates called purchase groups, underwriting groups, or distributing syndicates.

In other financial contexts, syndicate may refer to any group of financial institutions that works together on a particular project. Syndicate also describes a group of investors who make a joint investment in a company.

syndicate

A method of selling real property in which a sponsor—the syndicator—sells interests to investors. At one time limited partnerships were the preferred vehicle.Today tenant-in-common properties (TICs) are extremely popular.

References in periodicals archive ?
Assuming the banking syndicate activity is managed on a treasury management system, the members will experience improved internal controls in addition to the significant financial impact.
The agreement is conditional, inter alia, on the refinancing of the existing loans with the bank, the bank's approval and certain other approvals from the company's banking syndicate.
The banking syndicate is further complemented by Oversea-Chinese Banking Corp (SIN:O39), Hongkong and Shanghai Banking Corp and Sumitomo Mitsui Banking Corp.
Australian asset-manager Babcock & Brown Limited (SYD: BNB) has extended a suspension on the trading of its shares as it continues talks with its 25-company banking syndicate for a short-term loan.
Amey said it believed its banking syndicate remained 'supportive' but its parent company had 'insufficient reserves' to cover the pounds 2.9 million dividend payout.
Amey said it believed its banking syndicate remained ``supportive'' but its parent company had ``insufficient reserves'' to cover the pounds 2.9m dividend payout.
Alro, a Romanian producer of aluminum, has accomplished the signing of an agreement for a USD 137 million worth of revolving loan facility with a banking syndicate recently.
9 April 2010 - US bank holding company GMAC Financial Services said on Thursday its online retail banking unit Ally Bank has agreed a USD7bn (EUR5.2bn) secured revolving credit facility with a banking syndicate.
Its banking syndicate is made up of 14 banks, led by HSBC and Bank of New York.
Skelmersdale-based Matalan declared that it has successfully closed a Au492 million debt refinancing with a banking syndicate comprising of Lloyds Bank Commercial Banking, Morgan Stanley and Barclays.
The deal is subject to approval by Premier Foods' shareholders and consent from the company's banking syndicate. It is expected to be completed by the end of October 2012.
A banking syndicate, led by the Standard Chartered Bank, has offered a US$1 billion loan to Angolan state oil firm Sociedade Nacional de Combustiveis de Angola (Sonangol).