The development of syndicated loans is getting faster and faster, and the proportion of syndicated loans in many large domestic financing businesses is also increasing year by year, which shows that it has played many important roles. Many people don't know much about the lead bank and correspondent bank of syndicated loans. Today, we will introduce the differences between them.

I. Meaning of lead bank and correspondent bank

Lead bank: sometimes called manager bank or main bank. Literally speaking, it is the organization that organizes this syndicated loan, which is equivalent to the captain and builds a bridge. In the early stage, we will do research and screen suitable loan banks, and then we will continue to introduce all the information.

Please note that sometimes there is more than one lead bank, or there may be multiple lead banks. In addition, once the syndicated loan is signed, the lead bank will become an ordinary bank, but the proportion is different.

Agent bank: that is, management bank. After the syndicated loan agreement is reached, the management work will belong to the agent bank.

2. What is the difference between the lead bank and the correspondent bank?

The essential difference is that the lead bank is the institution and the agent bank is the management.

1. The lead bank is a bank with a relatively large loan share, while the correspondent bank is generally elected by the lending bank and the borrower in the syndicate, and the two appear in different forms.

2. purpose. The main tasks of the lead bank are to initiate loans, arrange loan shares, conduct investigations and negotiate terms. , in order to organize syndicated loans. Agency banks mainly do management, coordination, post-loan management and deal with the content of breach of contract.

Note: The lead bank may be the correspondent bank, the same bank, or it may be decided by the members of the syndicate through consultation.