Syndicated loan and other types of external financing

 

Syndicated loan and external financing for Businesses

Havelet Finance Limited is ready to provide businesses with a full range of advisory services, including financial modeling, selection of optimal funding sources and assistance in obtaining a syndicated loan on favorable terms.

Syndicated loan and other types of external financing

The main features of syndicated financing are listed below:

  • Long term maturity: usually several years, but there are known examples with maturities up to several decades, especially in the oil and gas sector, energy and environmental projects. • The loan is intended to finance specific activities, including the construction of a new thermal power plant or laying of a gas pipeline. • The funds are partially provided in the form of a revolving loan up to a certain limit established by the agreement.

The role of a financial advisor in obtaining a syndicated loan

The role of a financial advisor in obtaining a syndicated loan

  • Conducting a detailed analysis of the financial market. Choosing the most appropriate moment to enter the market to obtain a loan on the best terms.
  • Selection of alternative sources of financing for the project, which will supplement or replace the syndicated loan. Determination of the most suitable banks or financial institutions to manage funds. Providing a list of institutions interested in the project.
  • Professional assistance in drawing up a business plan at the request of the bank. Execution of official documentation and negotiations with interested parties. Only companies that have experience in syndicated financing or are part of an international group using such financing can enter the market without the assistance of a financial advisor.

Stages of obtaining a syndicated loan for a large project

Syndicated loan standard terms and conditions

  • •The size and position of the company in the market.
    •The amount of the syndicated loan and its maturity.
    •History of cooperation with agent bank.

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