Direct syndicate loan is a loan arrangement where multiple banks or non-banking financial institutions approved for loan services adopting the same loan agreement on ground of homogenous conditions to a single borrower. The lending banks assume loan risks pro rata to their loan share.
Functions and Features
Financing amount is large, financing period is long. Direct syndicated loan makes full leverage of overall financial functions to provide financing service for the companies, especially for the large corporations and key projects.
Diversify loan risk. Direct syndicated loan promotes the growth of the corporate group and economics of scale while diversifying and preventing loan risk.
Application Process
a) Application: you can apply direct syndicated loans in bank of Kunlun and entrust bank of Kunlun to be the leading bank, you must fill in the direct syndicate loans application and letter of authorization;
b) Investigation and market testing: According the evaluation and market testing results, bank of Kunlun will give you funding conditions.
c) Approval and preparation: Indirect syndicated loans can be in preparation as soon as bank of Kunlun approves;
d) Sign off and withdrawal: sign off on the direct syndicated loans contract, funds can be distributed as soon as the conditions are ready, then entrusted bank will supervise the loan according to the agreement;
Fee of indirect syndicated loans includes loan interest and loan fees, fees include commitment fee, management fee, agency fee and other kinds. The clients can consult with the bank to confirm the interest and fee of indirect syndicated loans according to the POBC and CBRC loan interest regulations.