What is loan syndication

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Loan syndication is the process of involving multiple lenders to provide funds for a single borrower.

Loan syndication involves multiple lenders pooling their resources to provide a large loan to a borrower.
It is commonly used for large-scale projects or acquisitions that require a significant amount of capital.
The lead bank or arranger coordinates the syndication process, negotiates terms, and distributes the loan among participating lenders.
Syndicated loans can be structured as either a club deal (few lenders) or a syndicated deal (many lenders).
The borrower benefits from accessing a larger pool of funds, while lenders can diversify their risk and earn fees and interest.
Examples of loan syndication include financing for infrastructure projects, corporate acquisitions, and real estate developments.

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