General description
A syndicated loan concerns the financing of a firm by two or more banks—each of which undertakes a certain percentage of the loan—usually to meet investment or longer-term working capital needs.
Features
- Repayment in instalments with or without a grace period, or repayment of the principal upon maturity
- Term: 3 to 5 years
- The interest rate can be fixed or floating, and is agreed following negotiation with the banks.