Syndicated loan

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A loan from a number of different lenders acting together.

The lenders form a syndicate and the borrower borrows from the syndicate.


Historically the lenders were normally banks, acting through an 'agent bank'.

The syndicated loan market also now includes some 'non-bank' lenders, notably hedge funds or pension funds, which will also be lending parties in syndicated loans – in the primary market for sub-investment grade and, in the secondary market more widely too.

Non-bank lenders are particularly attracted to fully drawn, often fixed rate tranches of a loan rather than revolving or stand-by tranches.


Three types of syndicated loan deal are:

  1. An underwritten deal
  2. A best-efforts deal
  3. A club deal


Loans which are not syndicated are known as bilateral loans.


See also


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