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Syndicated Loans & Management

Parallel Loans


In response to international banks' retrenchment from cross-border emerging market lending in FY09, IFC began syndicating parallel loans to International Financial Institutions (IFIs), and other ineligible B Lenders.

 

  • Under this new approach, IFC acts as arranger (and can also act as administrative agent) by using its existing syndication platform, deal-structuring expertise and global presence to identify investments, perform due diligence, and negotiate loan documents in cooperation with parallel lenders. 
  • In order to streamline cooperation with IFIs, IFC developed a Master Cooperation Agreement (MCA) in 2009 which details the manner in which IFIs work together to co-finance projects when IFC is the mandated lead arranger. In addition to the MCA, a suite of specimen legal documents have also been developed, including a Mandate Letter, enhanced Confidentiality Agreement, Common Terms Agreement (CTA) with Administrative Agency provisions and a simplified Loan Agreement.

                  

Administrative Agent Responsibilities

 

When CSLLM acts as Administrative Agent for Syndicated Parallel Loans, its main responsibilities are as follows:

 

  • Reporting
  • Waivers and Amendments
  • Disbursements and Other Payments
  • Facilitation and Intermediary Role

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