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Syndicated Loans
The financing option for when you need access to large amounts of capital through a single representative.
Corporate loans to finance large operations
A syndicated loan makes it possible to finance large operations, since it is granted between several financial entities, each of which contributes a percentage of the borrowed money. It is a type of loan that spreads the risk among several entities and that allows them to share guarantees.
Banco Santander has experience in all kinds of sophisticated operations. Regarding syndicated loans, the Bank has a market share close to 18% as a Bookrunner. In 2019, it closed more than 80 operations in this role.
How to arrange this financing
To contract a Syndicated Loan, visit your nearest Santander branch.
Financing formula adaptable to your business plan
Syndicated Loans are customer-tailored structures adapted to their business plan. Opting for a Syndicated Loan as a financing formula has many advantages:
- Simplify the relationship with financial entities, since there is only one representative: the agent bank.
- Access to a higher volume of financing.
- Speed when obtaining funds (assurances).
- Avoid continuous bilateral negotiations and renewals.
- It offers security in long-term financing.
- Expand banking relationships, as it allows the client to access international banking.
Visit Banco Santander and discover how to get a Syndicated Loan for your investment.
FAQs
Contracting a Syndicated Loan is easier than negotiating multiple bilateral loans with different entities as it centralises the negotiation with the agent bank. The origin of the operation may be more complex than a bilateral one, but with this the company ensures the “framework” of long-term financing.
The client ensures long-term financing at a specified margin. This saves recurring commissions from the renegotiation of bilateral operations. .
It doesn't have to be. A long-term price is set, avoiding the fluctuations in market margins and indexed to the company's leverage, so that companies with low leverage ratios are financed at low margins and vice versa. The profile of the company (whether it is highly leveraged or not) is paramount. The price obtained is appropriate for the level of debt.
The costs of syndicated loans are offset by the absence of periodic opening costs for bilateral loans. It allows a single representative (agent) and savings in administrative costs.
No, the company can design the financing together with the bank syndicate and maintain its relations, establishing the risk level of each entity.
While complying with the business plan, the company does not lose flexibility. The syndicate only reflects in a contract the internal action policies of a company (no leverage above a certain level, not to provide guarantees above a set threshold ...) and its business plan, including certain deviation.