The major benefit of syndication to Borrower is the large financing amount to be provided by a group of lenders for capital intensive project. Since all lenders share the same credit risk for a single transaction, Borrower do not have to approach and negotiate with numerous lenders to fulfil a single purpose substantial financing. Syndication loans save the time and most likely the cost of financing for Borrower. Imagine if a lender could save the time to conduct due diligence, terms negotiation and client acquisition, the lender would accept a lower lending rate due to saved staff cost and administrative cost…..(read more)
