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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References in periodicals archive ?

The total corporate finance portfolio and syndicated loans at the National Bank of Egypt (NBE) amounted to EGP 399bn by the end of April 2019, according to Sherif Reyad, head of the bank's credit group for corporate and syndicated loans.

EGP 399bn total corporate finance portfolio, syndicated loans at NBE end of April 2019

According to the chairman, negotiations are underway with various companies on issuing syndicated loans. He noted that such loans are one of the main drivers of economic growth.

VTB Bank Azerbaijan interested in selling syndicated loans

This is believed to the first such platform to go live in Latin America to offer club loans, which are syndicated loans with a smaller group of lenders.

Itau and Standard Chartered to launch blockchain platform for loans

However, the proportion of unitranche deals with a full set of covenants remains higher than for syndicated loans of similar size - only 15% of such deals in 2017 had a full set of maintenance covenants.

Fitch: Weaker Covenants, High Leverage in Unitranche; Pricing Holds

By CHARLES MWANIKIKenya could end up spending more than 80 per cent of the proceeds of last week's Sh202 billion Eurobond on retiring syndicated loans contracted in 2015 and 2017, the prospectus used to secure the loan shows.The Treasury took a $1 billion (Sh101 billion) syndicated loan from a consortium of banks in March last year, to mature in April 2019.

Why Kenya could spend 80pc of Sh202bn Eurobond to repay 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.

Taiwan sees lowest syndicated loan value of Asia's 4 little dragons in first 3 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.

StanChart wins big at EMEA Finance Awards

Summary: Moody's Investors Service is introducing a threshold level of EUR250 million for the assignment of credit estimates to syndicated loans.

Moody's Introduces a Credit Estimate Threshold in EMEA

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.

Middle East loans fall more than bonds on Arab uprisings

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.

TURKEY-BANKING SECTOR -Garanti secures EUR1 bln syndicated loan

Syndicated loans are large commercial loans provided to corporate borrowers by a group, or syndicate, of lenders.

Dodd-Frank's requirement of "skin in the game" for asset-backed securities may scalp corporate loan liquidity

Karl Nolson was named by the company to head a new syndicated loans team in London.