Loan Capital Market Solutions

A syndicated loan is a large loan negotiated with a group of lenders - usually banks and institutional investors who work together to fund a single borrower. This structure benefits both sides: borrowers gain access to larger pools of capital than a single lender could provide, while lenders reduce their individual risk by sharing it across the group.

One bank usually acts as the mandated lead arranger, co-ordinating the deal and managing negotiations and communication between the borrower and lenders.

Credit and political risk insurance covers lenders and investors against non-payment - whether due to borrower default or political events such as expropriation, currency restriction or civil unrest. This is especially important when financing cross-border projects in higher-risk jurisdictions where many investors and banks require this cover as a condition of participation. By having credit and political risk insurance, it opens borrowers to a wider pool of funders.

ECA finance involves funding that is supported by government-backed institutions to derisk international trade. ECAs provide guarantees, insurance or direct loans to make it easier for exporters to raise finance. This is particularly valuable when trading in higher-risk jurisdictions. Having their backing gives banks and investors confidence to lend and can help borrowers secure more competitive terms and longer payment periods for cross-border projects.

Syndicated loans are complex and don’t end once the loan is signed. A facility agency assists in managing the loan from end-to-end, ensuring that the loan runs smoothly throughout its tenure. Acting as a central point of co-ordination, a facility agency assists in everything from interest calculations to waivers, consents and amendments, ensuring seamless communication between the lender and borrowers. This service is offered to clients where RMB is the lead arranger.