![]() Loan syndication occurs when a single borrower requires a large loan ($1 million or more) that a single lender may be unable to provide, or when the loan is outside the scope of the lender’s risk exposure. The syndicate may be a combination of various types of loans, each with different repayment terms that are agreed upon during negotiations between the lenders and the borrower. ![]() One of the lenders act as the manager (arranging bank), which administers the loan on behalf of the other lenders in the syndicate. Each lender in the syndicate contributes part of the loan amount, and they all share in the lending risk. The borrower can be a corporation, an individual project, or a government. ![]() A syndicated loan is offered by a group of lenders who work together to provide credit to a large borrower.
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