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A unique lending process that involves financing by a group of lenders to a single borrower for an amount that a single lender cannot provide, is called loan syndication.u00a0The syndicate loan can involve various types of funding including a fixed amount of funds, a credit line or a combination of the two.u00a0https://www.celusion.com<br>
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CELUSION Loan Syndication A syndicated loan or a syndicated bank facility is a loan granted by a group of lenders to a single borrower that requires a large sum of money. The group of lenders is called a syndicate whereas the borrower can be a businessman, a big corporation or a project.
CELUSION Parties involved in Loan Syndication Arranger/Lead bank: Underwriting bank: A bank Responsible for arranging the syndication loan. A bank that accepts to underwrite the loan. Bookrunner: Agent Bank: A bank that forms a syndicate. A bank that administers the loan. Participant bank: Borrower: A bank that agrees to share a portion of the risk. A beneficiary entity that receives the amount.