Syndication loans represent a substantial portion of the commercial and industrial loan portfolios of large banks. A syndicated loan involves two or more banks contracting with a borrower, typically a large or middle market corporation, to provide funds at specified terms under the same credit facility.

The average commercial syndicated credit is in excess of TK100 million. Syndicated credits differ from participation loans in that lenders in syndication participate jointly in the origination process, as opposed to one originator selling undivided participation interests to third parties. In a syndicated deal, each financial institution receives a pro rata share of the income based on the level of participation in the credit.

Additionally, one or more lenders take on the role of lead or "agent" (co-agents in the case of more than one) of the credit and assume responsibility of administering the loan for the other lenders. The agent may retain varying percentages of the credit, which is commonly referred to as the "hold level.".

Syndication Process

There are four phases in a loan syndication:

• Pre-Launch,
• Launch,
• Post-Launch, and
• Post-Closing.

The syndicated market formed to meet basic needs of lenders and borrowers, specifically:

• Raising large amounts of money,
• Enabling geographic diversification,
• Satisfying relationship banking,
• Obtaining working capital quickly and efficiently,
• Spreading risk for large credits amongst banks, and
• Gaining attractive pricing advantages.

Bank Asia is highly dedicated to provide best level of syndication loan facilities to encourage the industrialization of the country. In this regard we are providing loan facilities to eligible entrepreneurs or promoters.