A the loan share undertaken by the lead bank of syndicated loans shall not be less than 30% of the total amount of syndicated financing in principle.
B the share allocated to other syndicated loan members shall not be less than 50% in principle.
The correspondent bank of the syndicate must be the lead bank.
D. the loan conditions of members of a syndicated loan may be different.
Syndicated loan:
Syndicated loan, also known as syndicated loan or group loan, is an important form of international bank loan. Large medium and long-term international loans are mainly syndicated loans. Adopting syndicated loans can not only bring benefits to banks, but also spread risks, thus minimizing the loan risks borne by banks; At the same time, for borrowers, the procedure of borrowing syndicated loans is much simpler than obtaining loans from multiple banks alone.
Characteristics of syndicated loans:
1, the financing amount is large and the term is long. Because syndicated loans are composed of several banks, they can provide huge credit funds, instead of being limited by their loan scale like exclusive bank loans.
2. Diversify the loan risk. It is much lower for multiple banks to lend together than for one bank to take risks alone. Each lending bank only needs to bear the loan risk according to its own loan ratio, and it can also accelerate the capital turnover of each lending bank.
3. Avoid horizontal competition. At present, there is a surplus of hot money in the international market, and we are competing to find a way out and win customers. Using syndicated loan financing can avoid competition in the same industry and keep the interest rate at a certain level. ?
4. Strengthen business cooperation. Using syndicated loans to raise funds can also strengthen business cooperation between lending banks. ?
5. The financing time is short and the cost is reasonable. Its disadvantages are that there are many banks involved, it takes some time to achieve coordination, and the approval and operation links are complicated and time-consuming.