Introduction  
The Syndicate Loan is a loan arrangement where multiple banks or non-banking financial institutions approved for loan services adopting the same loan agreement on ground of homogenous conditions to a single borrower. The lending banks assume loan risks pro rata to their loan share.

Category
The syndicate loan may be classsified into direct syndicate loan and indirect syndicate loan according to different means of organization.

1. Direct Syndicate Loan: the members of syndicate appoint correspondent bank for loan issue, collection, and unified loan management. The international syndicate loan mostly takes the form of direct syndicate loan.
2. Indirect Syndicate Loan: the lead bank makes loan directly to the borrower and then resells the loan participation right (i.e. the loan share) to other banks. The lead bank is in charge of entire loan management, fund release, and collection. 

Functions and Features
It makes full leverage of overall financial functions to provide financing service for the companies, especially for the large corporations and key projects. Therefore, it promotes the growth of the corporate group and economics of scale while diversifying and preventing loan risk.

Target Clients
Corporate or other organizations of economic activities accepted by the bank registered and established in China and complying with stipulations in General Provisions of Loans of the People's Bank of China.

Currency and Tenor
The transaction currency may be both RMB and foreign currencies. The tenor of the syndicate loan is negotiated by and between the borrower and the lenders according to the borrower's production cycle, repayment capacity, and project valuation. The tenor is generally 7 to 10 years.

Price
The loan price is composed of interest and fees.

1. Interest: 
The loan interest for local syndicate loan is assessed according to the People's Bank of China regulations. The loan interest for international syndicate loan participation can be fixed rate or float rate. The fixed interest rate is the loan interest rate determined through negotiation by and between the borrower and lender. It is defined upon signing of the loan agreement and remains unchanged during the entire loan tenor. The floating interest rate takes LIBOR as the basic rate plus certain spread as the risk compensation for syndicate loan.
2. Fees: 
In international syndicate loans, in addition to payment of loan interest, the borrower bears other fees such as commitment fee, administration fee, agency fee, placement fee, and miscellaneous.

Application Materials
1) Syndicate loan application;
2) Qualification certificates of the borrower and its shareholder and guarantor (except for bank or other financial institutions), name list, signature specimen and CV of the Board members, General Manager and Deputy General Manager, chief economist, chief accountant, and other executives; 
3) Project proposal approved by the government, feasibility study report, project budget, and other documents and approvals; 
4) Capital verification report or certificate of funding of borrower's registered capital;
5) The borrower's articles of association and joint venture or cooperative contract for foreign-invested companies and inland associated enterprises; 
6) Commercial contract of equipment and technology procurement or other relevant contracts; 
7) Project construction contract and constructor information materials; 
8) Financial statements and relevant documents of the borrower, the investor, and the guarantor in recent 3 years; 
9) Title certificate, checklist, and evaluation report for mortgages; 
10) Other documents and materials as required by Hua Xia Bank.