The Role of Sydnicated Loan in Project Financing
Keywords:
syndicated loan, hydropower plant construction project, agent bank, project financing, risk diversification.Abstract
The Article discusses the mechanism of project financing - loan syndication that has very often been applied during the last decades despite the different needs of lenders.
The loan syndication is a means of financing when two or more commercial banks issue loan together and accordingly share risks to finance a project.
The loan syndication is a very commonly applied to finance a project especially such projects which require a big amount of funds. As a rule these are energy sector and infrastructure related projects.
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