syndicate

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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 ?
First, the sponsor identifies an asset appropriate for syndication. For tax and marketing reasons, this is normally either a core or value-add building, or a small portfolio of buildings, whether multifamily, retail, office or industrial, fully leased, with a market value of between $10 million and a $50 million.
The FDIC somewhat accurately distinguishes a syndicated loan from a participated loan as follows: "lenders in a , syndication participate jointly in the origination process, as opposed to one originator selling undivided participation interests to third parties." The agency avers the "average commercial syndicated credit is in excess of $100 million" and beneficially meets "basic needs of lenders and borrowers" by "raising large amounts of money, enabling geographic diversification, ...
Still, it's good for a CFO to ask about the lender's rationale for the syndication to better understand the lending dynamics at play.
Our analysis concentrated on the 79 "known" survival projects culminated from the 577 individual syndications where the actual "outcome" is known (identified as Terminal Action Code Revised.
London, which boasts several hundred banks actively involved in syndications, has always been the geographic centre for syndicated lending.
A primary benefit of syndications is expanding your financing sources.
66, Accounting for Sales of Real Estate, to syndication activities.
In his new role, he would supervise Afreximbanks loan syndication and distribution function as well as the agency and security trustee function.
Al Musafir said the broad cross-section of banks that participated in the syndication reflects deep confidence in Bank Sohar and the progress it has made in its short history, especially with becoming Oman's 4th largest bank and yet having the lowest level of NPAs.
The firm has hired Cenk Karacaoglu as head of syndications in the debt business.
With over two decades of banking experience as a debt capital markets executive, Katon joined the company in 2009 as managing director and group head of the commercial syndications business.
"With the global credit markets all experiencing significant pressure, we are especially pleased to see the level of international and regional participation into this syndication which shows the confidence that has been placed by the financial community in our company.