1. A banking group led by one or more banks authorized to engage in loan business, with the participation of many banks and non-bank financial institutions, adopts the same loan agreement and provides financing to the same borrower according to the agreed terms and conditions.
2. Products serve large and medium-sized enterprises, enterprise groups and national key construction projects with huge capital demand.
3. When the amount of funds sought by the borrower is so large that any bank can't bear the credit risk of the borrower, the demand for bank groups arises.
4. The users of the syndicated loan market are borrowers seeking a large amount of financing in the bank loan market.
Syndicated loan business:
1, the loan amount is large and the term is long. It can meet the long-term and large capital needs of borrowers. It is generally used for new project loans, large-scale equipment leasing and enterprise merger and acquisition financing in transportation, petrochemical, telecommunications, electric power and other industries.
2. Financing takes less time and energy. After the borrower and the host bank reach an agreement on the loan terms, the host bank is responsible for forming a syndicate. In the loan execution stage, the borrower does not need to face all members of the syndicate, and the related loan management work such as withdrawal, repayment of principal and interest is completed by the agent bank.
3. Members of a syndicated loan shall decide their credit granting behavior independently according to the principles of "information sharing, independent examination and approval, independent decision-making and risk-taking", and enjoy the corresponding rights and obligations under the syndicated loan according to the actual committed share.
4. It is beneficial for the borrower to establish a good market image. The successful establishment of the syndicate is based on the full recognition of the financial and operating conditions of the borrowers by the participating banks, and the borrowers can take this opportunity to expand their reputation.