Term Loan Syndication.
We arrange term loans for new projects as well as for expansion plans for existing projects from one or more banks at the cheapest possible rates and in the lowest possible time.
For large bank exposures we advice multiple consortium banking where more then one bank jointly finance a company / projects.
Here, the interest rates are fixed for term of loan/floating based on benchmark rates. Generally these loans are agreed upon with a lead bank also called consortium leader of the loan, it can:
- Put up comparatively larger share of loan
- Perform duties like dispersing cash flows amongst consortium members
- Undertake administrative tasks
The main goal of syndicated lending is:
- Spreading risk of borrower default across multiple lenders or institutional investors like pensions funds.
- These are also used in leveraged buyout community for funding large corporate takeovers with primarily debt funding
The loan facilities that are commonly syndicated include:
- Term Loan Facility: Under this the lenders provides a specified capital sum over set period of time, known as the "term".
- Revolving Loan Facility: It provides borrower with maximum aggregate amount of capital that is available over specified period of time.
- General: These loan agreements can contain only term/revolving facility or a combination of both or several of each type.
- Debt from European banks and Institutions: This involves rupee term loans for meeting the financing demands of new projects as well as for expansions.
- Foreign Currency Term Loans: This involves foreign currency loans linked to LIBOR/ Euribor.
- CNR (B) Loans: This involves Foreign Currency loans from European Banks.
