Syndication and transfer of loans

This overview is a guide to the Banking & Finance content in the Syndication and transfer of loans subtopic, with links to appropriate materials.

Why lenders transfer loans

There are times when a lender might want to get back some of the money it has lent to a borrower before the borrower is due to repay it.

If the borrower is performing its obligations under the loan agreement, the lender cannot demand early repayment of the loan or take any steps to recover amounts from the borrower. The only option therefore, is to look to transfer the loan to another lender.

Transferring the loan might be the objective from the outset of the transaction. For example, on syndicated transactions, one or more lenders underwrite the facilities with a view to transferring some or all of their commitments once a syndicate of lenders has been formed. Commitments may then continue to be transferred during the life of the facility in the secondary market.

Transferring loans also enables a lender to:

•
change the profile of its balance sheet to ensure that it meets internal and external capital

To view the latest version of this document and thousands of others like it, sign-in with LexisNexis or register for a free trial.

TAKE A FREE TRIAL

Latest Banking & Finance News

Supreme Court confirms application of immovables rule to English property

The Supreme Court has unanimously dismissed Ms Kireeva’s (Russian bankruptcy trustee’s) appeal to overturn the Court of Appeal’s’ decision regarding matters arising out of the bankruptcy of Mr Bedzhamov. Peter Declercq and Patrick Elliot, partners at DCQ Legal (who acted for Ms Kireeva), discuss the implications of the judgment.

ESMA seeks input on active account requirement under EMIR 3

The European Securities and Markets Authority (ESMA) has published a consultation paper on the conditions of the active account requirement (AAR) following the review of the European Market Infrastructure Regulation (EMIR 3). The AAR mandates that EU counterparties active in specific derivatives maintain an operational and representative account with an EU-authorised central counterparty. Responses are sought by 27 January 2025, with ESMA aiming to submit final draft regulatory technical standards (RTS) within six months of EMIR 3's enactment. ESMA plans to organise a public hearing on 20 January 2025.

UK payments regulator sees competitiveness objective introduced via the backdoor

MLex: Until now, the UK's payments regulator has avoided the additional scrutiny that a competitiveness and growth remit brings with it. Following a letter from the finance minister to the Payment Systems Regulator (PSR) on 14 November 2024, that appears to have changed. In executing its functions, the PSR must now have regard to the government's growth and competitiveness strategy. That is likely to prove a flashpoint for the fintech sector, which has been irked by the PSR over its handling of fraud reimbursement rules.

Council adopts EU ESG Ratings Regulation

The Council of the EU has announced its adoption of the Regulation on the transparency and integrity of Environmental, Social and Governance (ESG) rating activities and amending the Sustainable Finance Disclosure Regulation (EU) 2019/2088 (EU SFDR) and the ESG Ratings Regulation (EU) 2023/2859. The Regulation will be published in the EU’s Official Journal (OJ) before entering into force 20 days later; it will apply 18 months later.

View Banking & Finance by content type :

News