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Syndicate Loan

Introduction

A syndicated loan is a very efficient financing mechanism through which surplus liquidity from the financial markets can be mobilized to support significantly larger financing requirements of borrowers. The financing is typically provided by a consortium of at least 2 or more financial institutions to appropriate borrowers under a common set of financing terms governed by the same loan facility documentation. An agent bank will intermediate between the borrower and the financial institutions during the tenure of the loan. BOC is equipped with the necessary expertise and acquired experience to arrange such loans on behalf of our valued customers.

Product Features

Generally, the financing quantum must be of a significant amount to warrant such an arrangement and to facilitate cost savings through economies of scale. Generally the following features are applicable:

1. Such financing can be sourced from local, regional or the international financial markets depending on the features of the underlying financing. The participating lenders may also originate from different geographical domiciles.

2. This mode of financing is widely applicable to support purposes such as working capital, general corporate and treasury funding, investments, acquisitions and project financing requirements, and is relevant to different industry sectors. Depending on the requirement, different currencies such as US, RMB, ZAR, etc can be considered.

3. The financing can be raised through term loan, revolving credit or other structures to suit your requirements.

Eligible Applicants

The appropriate users of syndicated loans are the medium to large corporations, multi-national corporations, financial institutions, governmental organizations and central governments including their related agencies. The financing can be undertaken by these entities directly themselves or indirectly through their relevant special purpose companies under credit enhanced structures. Applicable terms will depend on, amongst many other factors, borrower's financial profile, the financing requirement, and prevailing conditions in the international financial markets.

Application Requirements

Depending on the underlying nature of the financing requirements, the availability of existing information and taking into account market expectations, the basic information required will include amongst others, at least the following:

1. Details of the specific financing requirements;

2. Background details and financial profile of the borrower and its group;

3. Business plans;

4. Annual report or financial statements for the most recent 3 years including cash-flow projections; and

5. Other information as requested

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