Security Trust Services
Loan Syndication
Loan syndication is the process of engaging several Lenders to provide various portions of a loan to a Borrower.
They usually occur in situations where a Borrower requires a large sum of Funds for capital projects, which may be too much for a single Lender to provide, and as such, multiple Lenders come together to provide the Borrower with the desired amount, with one of the Lenders acting as the Lead Arranger/Lead Lender.
BENEFITS
- Loan syndication allows for diversification as multiple financial institutions participate in funding a single loan.
- Access to huge loan amount under a single transaction.
- Gives access to multiple lenders with specialized expertise.