Syndicated Loans

A syndicated loan is when multiple lenders, such as banks or financial institutions, come together to provide a large loan to a single borrower. This collaboration spreads the risk among the lenders and allows the borrower to access a substantial amount of funding that might be too big for one lender alone. The loan is coordinated by a lead bank or arranger, who manages the process and communicates with all parties. Syndicated loans are common for financing large projects, mergers, or acquisitions, offering flexibility and shared risk for both borrowers and lenders.