A syndicated loan is a fundraising scheme in which an “arranger” (a lead financial institution) forms a syndicate of lenders to provide loans on the same terms and conditions under a single contract to satisfy the funding needs of clients. The SuMi TRUST Group uses syndicated loans not only for conventional corporate loans but also for real estate finance, ship finance, buyout finance, and other structured finance transactions.
Syndicated Loan Scheme
Before Entering Into the Agreement
The arranger receives a mandate from the customer and composes a syndicate group.
Services of the Arranger
- Establish Lending Terms and Conditions
- Invitation to Lender*1 (Participating Financial Institution)
- Make and Enter into an Agreement, etc.
- *1 The Arranger may also participate in the syndicate group.
After Entering Into the Agreement
Unlike conventional financing, an agent representing each lender intermediates between the lender (participating financial institution) and the borrower (customer) and handles various procedures.
- Fund Settlement Services (Management of Due Dates, Collect and Payment of Principal and Interest)
- Communication Services (Send Various Notifications), etc.
- *2 It is common for the financial institution that acted as the arranger to act as the agent.