According to the Regulation, a syndicated loan is a loan allocated by members of a banking syndicate to co-finance a borrower.
A member of a banking syndicate may be a bank, a foreign bank, an international financial organization, or a foreign legal entity authorized to provide loans in accordance with the laws of the State where it is registered.
To obtain a syndicated loan, the borrower applies to the bank with an application.
When deciding on the possibility of allocating a syndicated loan, the bank agrees with the borrower on the preliminary terms of the syndicated loan.
The lead participant sends potential participants an offer to participate in a banking syndicate with information about the borrower.
A banking syndicate is created on the basis of a written agreement between the syndicate members, which defines the relationships, rights and obligations of the syndicate members.
