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
- 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.
- 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.
- Actively structures loans, centering on term loans
- Involves a wide range of participants, making use of its neutral standpoint
- 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.)
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.