Скачать или смотреть PROJECT FINANCE LECTURE 48: PROCESS OF LOAN SYNDICATION- B.COM CA S3

 Pre-mandate stage: it is the initial step to be taken by a prospective borrower. It is the process of coming an agreement with an investment banker for the purpose of loan syndication.
 Appointment of investment banker: several investment banks serve as lead arrangers to arrange such type of loans. The investment bankers arrange loan facilities to corporates who are in need of fund after verifying the necessary documents.
 Approaching different banks: investment bankers then approach different banks for participation in the loan syndication transaction. Subsequently, each bank informs its respective commitment to the loan transaction, the bank with the highest commitment is selected as the lead bank.
 Fixing terms and conditions: the lead bank stipulates the terms and conditions of the sanctioned loan in a document. Thus document is known as a term sheet. The term sheet contains details such as an amount of loan, the rate of interest, collateral, repayment schedule, special terms if any, etc.
 Fulfilment of conditions of the loan: after execution of loan documentation, borrowers have to fulfil the conditions stipulated in the loan document.
 Appointment of security trustee: usually, bankers appoint a security trustee in syndicate financing transaction. The security documents are held in the custody of the security trustee.
 Loan disbursement: loan is disbursed through account opened exclusively to disburse the loan. This account and its withdrawals are monitored by banks. This is to ensure that the loan is used only for the purpose defined in the loan agreement.
 Fee charges: on loan disbursement, the investment bankers receive certain percentage of the amount of loan as their transaction fee.