Syndicated loan refers to a loan business in which two or more lenders provide loans to one or more borrowers under the same loan conditions and different division of labor, and sign the same loan agreement.

Usually, a bank will be selected as the correspondent bank to manage the loan on behalf of the syndicate members. The so-called syndicated loan means that two or more banks provide a large loan to a large company, such as building a expressway or a railway. Second, the reasons for international syndicated loans.

The reasons for the continuous development of syndicated loans are as follows: ① The financing amount is large, the term is long, and it is not limited by the loan scale; (2) The loan risk is dispersed, and each lending bank only bears the loan risk according to its own loan ratio; (3) Avoid horizontal competition and strengthen business cooperation; (4) There are no restrictive conditions, such as the loan must be used to buy goods from the lending country; ⑤ Short financing time and reasonable cost.

3. What is a syndicated loan? What is its organizational form? Why are international loans mostly syndicated loans?

Syndicated loan refers to the loan business agreed by two or more lenders with one or more lenders according to the same loan conditions and different division of labor. Usually, a bank will be selected as the correspondent bank to manage the loan on behalf of the syndicate members.

Syndicated loans are mainly composed of the host bank, the lead bank, the handling bank, the participating banks, the agent bank and the coordinating bank, and all members perform their duties, enjoy rights and bear risks according to the contract or their respective loan proportions. Arranging bank (lead bank); The second is the manager line; The third is to participate in the trip.

1. Arranging bank refers to one or a group of organizers and arrangers entrusted by customers to organize syndicates and arrange loan issuance. Usually, the arranging bank will also underwrite the entire syndicated loan.

2. The lead bank refers to the bank that underwrites a large share of syndicated loans and has the highest status among management team members. Usually, the guide line is an arrangement line.

3. The handling bank refers to the position given by the lead bank according to the loan amount and level promised by each bank in the syndicated loan with a large amount and many participating banks, and is a syndicated bank. The handling banks form a syndicated loan handling group, which is mainly responsible for discussing the loan documents with the lead bank until the loan contract is signed.

4. Participating banks refer to banks that accept the invitation of arranging banks, participate in loan syndication and provide loans in the form of shares. The loan share with the manager is small, and there is no underwriting responsibility and other substantive preparations.

5. The correspondent bank refers to one of the banks selected by the syndicate members and agreed by the borrower to act as the correspondent bank during the loan period. After the loan agreement is signed, the agent bank acts on behalf of the syndicate members according to the terms listed in the loan agreement, and is responsible for loan management matters such as withdrawal, debt service and post-loan management, information communication between the borrower and the syndicate members, and handling default events.

6. The coordinating bank refers to the bank selected from the lead banks to be responsible for the whole syndicated loan and undertake part of the syndicated preparation tasks.

7. Consulting bank refers to the financial consulting service that the borrower can appoint a bank as a consultant in order to make a correct loan decision in the face of the quotations and loan conditions of many banks in the syndicated loan, so as to ensure the smooth progress of various loan work.

Applicable customers

1. The borrower has long-term large loan demand.

2. The borrower's ability, financial strength and technical strength are recognized by most banks.

4. What is a syndicated loan? What is its organizational form? Why are international loans mostly syndicated loans?

Syndicateloan is a medium-and long-term loan that provides large amounts of money to borrowers. It is led by one or several commercial banks, with several or dozens of banks as participating banks.

Organizational form:

Syndicated loans are mainly composed of the host bank, the lead bank, the handling bank, the participating banks, the agent bank and the coordinating bank, and all members perform their duties, enjoy rights and bear risks according to the contract or their respective loan proportions. The member banks of the syndicate are mainly divided into three levels: first, the bank is the lead bank; The second is the manager line; The third is to participate in the trip.

1. Arranging bank refers to a bank or a group of banks entrusted by customers to organize syndicated loans and arrange loan issuance, and is the organizer and arranger of syndicated loans. Usually, the arranging bank will also underwrite the entire syndicated loan.

2. The lead bank refers to the bank that underwrites a large share of syndicated loans and has the highest status among management team members. Usually, the guide line is an arrangement line.

3. The handling bank refers to the position given by the lead bank according to the loan amount and level promised by each bank in the syndicated loan with a large amount and many participating banks, and it is the bank that undertakes the group task in the syndicated group stage. The syndicated loan manager team is mainly responsible for organizing and reviewing the feasibility of loan projects and teams, discussing loan documents with the lead bank until the loan contract is signed.

4. Participating banks refer to banks that accept the invitation of arranging banks to participate in loan syndicates and provide loans according to the share determined through consultation. Different from the members of the management team, they subscribed for a relatively small share of loans and did not undertake any underwriting responsibility and other substantive preparations.

5. The correspondent bank refers to one of the banks selected by the syndicate members and agreed by the borrower to act as the correspondent bank during the loan period. After the loan agreement is signed, the agent bank acts on behalf of the syndicate members according to the terms listed in the loan agreement, and is responsible for loan management matters such as withdrawal, debt service and post-loan management, information communication between the borrower and the syndicate members, and handling default events.

6. The coordinating bank refers to the bank selected from the lead banks to be responsible for the whole syndicated loan and undertake part of the syndicated preparation tasks.

7. Consulting bank means that in syndicated loans, facing the quotations and loan conditions of many banks, in order to make a correct loan decision, the borrower can designate a bank as a consulting bank to provide paid financial consulting services for the borrower to ensure the smooth progress of various loan work.

Why most international loans appear in the form of syndicated loans;

The implementation of syndicated loans by commercial banks has a function that a single loan does not have. 1. Disperse the risks of international loans and strengthen the control of borrowers; 2. Members can implement effective loans within the limits of their credit scale; 3. Provide opportunities for small and medium-sized banks unable to engage in international loans to enter the international loan market; 4. It is beneficial for banks to further expand their international business;