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• ARRANGEMENT FEE
• REPUTATION RISK
ROLES WITHIN THE SYNDICATION PROCESS
2. UNDERWRITING BANK
• THE BANK THAT COMMITS TO SUPPLYING THE FUNDS TO
THE BORRWOER - IF NECESSARY FROM ITS OWN
RESOURCES IF THE LOAN IS NOT FULLY SUBSCRIBED.
3. PARTICIPATING BANK
• THE BANK THAT PARTICIPATES IN THE SYNDICATION BY
LENDING A PORTION OF THE TOTAL AMOUNT REQUIRED.
• RISKS:
- BORROWER CREDIT RISK (AS NORMAL LOANS).
- A PARTICIPATING BANK MAY BE LED INTO PASSIVE
APPROVAL AND COMPLACENCY (i.e. SO MANY HIGH
PROFILE BANKS CANNOT BE WRONG!).
ROLES WITHIN THE SYNDICATION PROCESS
3. POST-CLOSURE PHASE