3/29/2024 0 Comments Syndicated loan lead arranger![]() ![]() Interest rate varies depending on each borrower’s financial status and implemented pursuant to the terms of loan agreement.įees including but not limited to arranger fee, underwriting fee, facility agent fee and commitment fee, etc.ġ.Borrowers with long-term and large capital requirementĢ.Borrowers enjoy good reputation in their own industries. Borrower can also choose a basket of currencies at its own combination. Loan currency principally in HKD, MOP or USD but can be in AUD, JPY, EUR and GBP. Repayment according to terms and conditions agreed by each bank. Repayment administered by the facility agent for distribution to syndicate lenders Uniform terms and conditions agreed by all lenders of the syndicateīorrower may negotiate different terms and conditions with different banks The lender makes independent assessment from its own information gathered.īorrower is required to sign different loan agreements with different banks. Relationship between the borrower and the lender is one to oneĮach lender of the syndicated loan makes decision based on the information memorandum supplied by the lead-arranger. The borrower can take this opportunity to enhance its business reputation.ĥ.Comparison of syndicated loan and bilateral loan Itemįormation of syndicate lenders administered by arranger and facility agent Successful conclusion of a syndicated loan means full recognition of the borrower’s financial and operational situation. Borrower can choose term loan, revolving loan and standby letter of credit in any currency.Ĥ.Beneficial for the borrower to establish a good market place. Borrower is only required to deal with the facility agent in favour of all lenders in respect of drawdown and repayment.ģ.High flexibility in structure and currency. After negotiation of terms and conditions with borrower, the arranger is responsible for syndicate formation. Syndicated Loan is a loan made by two or more lenders and administered by a common agent using similar terms and conditions and common documentation.ġ.Loan of large amount with long tenor to satisfy medium to long-term financing needs of borrower with loan proceeds applicable in transportation, petrochemical, telecommunications, electricity, hotel and real estate, large equipment leasing and leveraged buy-outs, etc.Ģ.Borrower is not required to deal with different banks management of loan becomes more efficient. Syndicated Loan Services are provided by Bank of China Limited Macau Branch. ![]()
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