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Syndicated Loans

About Syndicated Loans

This type of loan involves multiple lead-managing financial institutions (arrangers) that are combined into a syndicate. The agreement with the customer is based on a single contractual document, and financing is provided cooperatively according to a single set of terms.

Roles of Main Participants

Arrangers
After being commissioned by the customer, arrangers form lead-manager syndicates to structure syndicated loans.
Participating Financial Institutions (Participants)
Financial institutions that provide financing
Agency and other Servicest
After financing is underway, this representative from the syndicate is assigned to conduct settlement operations and communicate with the customer on behalf of the syndicate. Typically, an arranger is appointed.

Benefits

  • Having a single arranger in the point negotiating position reduces the administrative burden.
  • Conducting settlement operations through an agent reduces the administrative burden.
  • Large amounts can be raised expeditiously.
  • Appointing an arranger allows the number of financial institutions involved in the transaction to be increased.
  • Clarity of borrowing terms is ensured.

DBJ's Services

  1. Actively structures loans, centering on term loans
  2. Involves a wide range of participants, making use of its neutral standpoint
  3. Enables raised funds to be put to a variety of uses
    (Typical infrastructure capital, structured financing for MBOs and other purposes, DBJ financing based on environmental responsibility ratings, etc.)

Case Studies

Takeda General Hospital

DBJ arranged large-scale, long-term financing through a syndicated loan that allowed the hospital to construct a new wing in line with its operating and construction plans.

USJ Co., Ltd.

In this case, shoring up the company's finances through a preferred stock issue, we proposed a refinancing solution that was instrumental in enabling USJ to list its shares. The outcome was positive for the company and the myriad people who are associated with the park's operation.

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