Loan syndication

Loan syndication occurs when a group of lenders participate in a lending arrangement with a borrower. This arrangement most commonly arises when a large borrower (such as a corporation or a government) wishes to borrow an amount that exceeds what any individual lender is willing to lend. Loan syndication allows lenders to spread the risk of default by the borrower. The loan is typically administered by a lead bank; this entity is usually the lender that is lending the largest amount to the borrower.

Related Courses

Corporate Finance 
Treasurer's Guidebook