Syndicated and Club Financing
Advantages for You
- Financing (loans or guarantees) beyond the capabilities of one bank in terms of the provided amount.
- Financing terms and conditions set out with the lead arranger or with a very specific group of banks.
- Client financial market position (quality and “name”) strengthened by obtaining syndicated or club financing.
Our advisors will be glad to inform you about the detailed price conditions
A type of financing designated for corporate clients, municipalities/institutions, or a group of connected clients arranged by a several lenders (banks); inlc. acquisition, export, commodity, project, real estate, operational financing, or bank guarantees. The loans are set out individually in terms of structure and maturity thereof.
Description of Syndicated Financing
Financing is arranged by a group of lenders (banks). The contracting parties thereof are represented by the lead bank (the arranger) that negotiates the terms and conditions of the proposed facility with the beneficiary, ensures that other underwriting banks have got involved and the mutual contractual documentation has been drawn-up and signed by all participants thereof. The underwriting banks can partially assign their participations to other participants. Over the course of financing the arranger (the agent) acts on behalf of lenders in serving of the beneficiaries and carries out subsequent administrative tasks thereto.
Description of Club Financing
The principles are similar to those of syndicated financing, although the underwriting participants do not disperse their facilities to other participants, thus retaining their full participations. Again, the loan split/spreading is regulated by a club coordinator or the lead bank (the arranger).
The range and specification of documents required from the client are subject to individual financing structures thereof. The lead bank (the arranger) or club coordinator is assigned in the course of discussions between the client and the syndicate participants/members.