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Syndicated Loans & Management

Standards and Operating Principles


Administrative Agent Role

 

  • The Administrative Agent Role is meant to provide an efficient facilitative role for a group of parallel lenders.
  • Parallel Lenders are direct lenders and maintain their direct relationship and right of action under a Common Terms Agreement and individual Loan Agreements.
  • IFC, as Administrative Agent, does not act as Lender of Record and does not share our Preferred Creditor Status. 
  • As Administrative Agent, IFC acts as primary liaison between the Borrower and Lender group responsible for communication flows, reporting, waivers/amendments, and payments. 
  • When there is a need to hire external experts (e.g. legal counsel, engineers etc) the Administrative Agent may work with the Borrower and lenders, to secure experts on behalf and as instructed by the Senior Lenders. 
  • We work with IFIs & local/regional lenders which are not eligible B Lenders. 
  • The Administrative Agent works on instructions from both the Borrower and Lenders and on the basis of the roles outlined under a Common Terms Agreement. 

 

Key Legal Differences from A/B Loan Structure

 

  • No sharing of Preferred Creditor Status
  • Voting rights – negotiated for each transaction
  • Independent right of action for each Senior Lender
  • Strengthened liability protection for Administrative Agent


 

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