If you are a corporate borrower in need of a large volume of borrowing, you may contact several creditor financial institutions to form a syndicate in order to finance your loan. In this arrangement, the contracting parties may appoint a Loan/Facility Agent where the latter acts as liaison between a corporate borrower and a syndicate of creditors to ensure compliance by all parties with all the covenants under the Loan/Facility Agreement.

Client Suitability

• Loan/Facility Agency arrangement is ideal for corporations wishing to borrow from a syndicate of lenders.

Service Features  

• Monitoring compliance of required conditions for loan release
• Monitoring of covenants under the relevant agreements
• Periodic interest rate setting
• Serves as paying agent and disbursing agent by receiving the borrower's interest and principal payments for distribution among its syndicate of creditors
• Coordinating creditors' meetings

Benefits to Clients

• Appointing a Loan/Facility Agent benefits the contracting parties since an objective and independent party will be handling and monitoring the loan requirements/covenants. The Agent will ensure safety of documents and uniformity in periodic interest rate setting, coordinate collection of payments from the borrower and to creditors, and monitor compliance of parties to the loan covenants. Moreover, it will also be convenient for the borrower because it need not deal directly with all creditors but with a single Loan/Facility Agent instead.