A very large loan made to one borrower by a group of banks headed by one lead manager, which usually takes only a small percentage of the loan itself, syndicating the rest to other banks and financial institutions. The loans are usually made on a small margin. The borrower can reserve the right to know the names of all the members of the syndicate. If the borrower states which banks are to be included, it is known as a club deal. A syndicated bank facility is usually a revolving bank facility. There is only one loan agreement.
Subjects: Financial Institutions and Services — Accounting.