A syndicated loan can be defined as a loan put together by a group of lenders that is structured, arranged, and administered by lead arrangers. FSDH provides loan syndication opportunities for clients with large sized projects which would typically exceed the Bank’s Single Obligor Limits. We advise on structuring, pricing and distribution of the syndicated loan or paper for our clients.
FSDH also provides underwriting services. There are typically, three types of underwriting for syndications: an underwritten deal, best-efforts syndication, and a club deal.
A Underwritten deal
An underwritten deal is one for which the arrangers guarantee the entire commitment, and then syndicate the loan.
A Best-efforts syndication
A best-efforts syndication is one for which the arranger group commits to underwrite less than or equal to the entire amount of the loan, letting the market forces drive the success or failure of the syndication.
A Club deal
A club deal is a smaller loan that is pre-marketed to a small or select group of relationship lenders typically a group or not more than 4 lenders.
The Corporate and Investment Banking team has well developed contacts with other Nigerian and International banks, is active in the Nigerian syndicated loan market and are available to discuss the best option for every Client’s loan syndication.
For further information, please contact the Corporate Banking Team at:
+234 (0) 1 2882111 -2