Syndicated loans are also called "syndicated loans". A banking group led by one or more banks that are allowed to operate 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. Products serve large and medium-sized enterprises, enterprise groups and national key construction projects with huge capital needs. When the amount of funds sought by borrowers is so large that no single bank can bear the credit risk of borrowers, the demand for banking groups arises. The users of the syndicated loan market are borrowers seeking a large amount of financing in the bank loan market.

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. Syndicated loans operate in various forms. In the same syndicated loan,

Various forms of loans can be provided according to the needs of borrowers, such as term loans, revolving loans, standby letter of credit lines, etc. At the same time, different currencies or currency combinations such as RMB, USD, EUR and GBP can be selected according to the needs of borrowers.

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.

5. 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.

6. When a single bank acts as the lead bank, its loan share shall not be less than 20% of the total syndicated financing in principle; The share allocated to other syndicated loan members shall not be less than 50% in principle. According to the responsibility of the lead bank for the final arrangement of the loan, the syndicated loan distributed by the lead bank can be divided into three types: full underwriting, partial underwriting and best promotion.

7. A syndicated agent refers to a syndicated loan agreement, which pools funds to provide loans to borrowers in accordance with the amount and progress determined by the relevant loan conditions and accepts the entrustment of the syndicate.

A bank that manages syndicated funds according to the responsibilities stipulated in the syndicated loan agreement. The correspondent bank may be the lead bank or determined by the members of the syndicated loan through consultation.

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