Syndicated Loans - Product and Advantages
The syndicated loan can be regarded as the further development of a classic bilateral loan. It is an ideal tool to establish new strategic banking relationships. The loan amount will be provided by a group of banks (the consortium or syndicate), with a leading bank taking over the role of the arranger who will be responsible for the co-ordination and administration of the transaction. Despite of the fact that a group of banks is involved, only one loan agreement needs to be signed.
Syndicated loans can be applied flexibly across the whole range of corporate finance purposes:
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Working Capital
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Investment Funding
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Bridge Finance
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Project Finance
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Acquisition Finance
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Leveraged Buy Out
For more than ten years WestLB has been a top arranger of syndicated loans. In close co-operation with our clients the syndication experts rely on their longstanding expertise to develop sound yet innovative financial solutions for corporates, financial institutions and public borrowers.
Your advantages at a glance
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One single loan instead of a number of credit lines
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New / consistent documentation standard can be established
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High flexibility in terms of amount, drawdown, currency, interest rate payment or redemption
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Financing of large amounts possible
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Time and cost savings due to large volumes and efficient administration
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Relief of existing credit lines with standard banks by adding new banks
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Restructuring of banking relationships possible
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Combinations with other financing tools possible (e.g. bonds, promissory notes, commercial paper)
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If required: publicity and active marketing of client name (in particular with regard to preparation of capital markets transactions)
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No external rating necessary
