Syndication Agent

Definition:

A bank or financial institution that acts as agent for a group of lenders in the loan Syndication process. In many cases, the Syndication Agent is offered as a marketing incentive to encourage other banks to join the Syndicate, but the Syndication Agent has no meaningful duties. In these cases, the Syndication is typically organized by another institution (the Arranger) with which the borrower has a banking relationship. In some transactions, the Syndication Agent has an active role in the Syndication process.

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