A credit facility granted by more than one bank to a borrower or associated borrowers under the terms of one agreement.
Syndication is the process by which one bank "sells" a portion of its debt to a syndicate of lenders, so reducing its own exposure but at the same time reducing its reward. An agent bank is appointed to liaise with the borrower on behalf of the members of the syndicate to receive repayments and distribute them in the correct portions to the additional lenders.
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USA
A credit facility granted by more than one bank to a borrower or associated borrowers under the terms of one loan agreement.
syndicationis the process by which one bank "sells" a portion of its debt to a syndicate of lenders and reduces its own exposure. An agent bank is appointed to interact with the borrower on behalf of the members of the syndicate, to facilitate borrowings, receive repayments and distribute them in the correct portions to the additional lenders and to administer the loans.
Practical Law Dictionary. Glossary of UK, US and international legal terms. www.practicallaw.com. 2010.