MUFG has a strong track record in the syndicated loan market, acting in a lead role as bookrunner and mandated lead arranger on numerous transactions. Additionally, our substantial balance sheet capacity makes us an underwriter of choice for transactions where certainty of funds is required.
MUFG helps clients to put facilities in place for a number of purposes, from more vanilla core loan facilities to highly complex and structured acquisition facilities.
We offer comprehensive support leading up to, and during, the arrangement of syndicated, club and bilateral loans. We manage deals from start to finish, engaging with all the relevant participants, including banks and lawyers, as well as leading on all documentation.
Our expertise and collaborative approach means clients enjoy efficient arrangement of their facilities, often within challenging timeframes and in volatile market conditions.
Our origination team will work with you on the structuring and execution of facilities while our dedicated syndicate, sales and trading team maintain regular contact with market investors to help successfully syndicate loans.
We typically complete syndicated transactions in six-to-eight weeks. However, for those event driven situations where funds need to be in place with the utmost urgency, this timeline can be significantly reduced. When MUFG act as a lead bank on transactions our clients benefit from:
- Tailored structure and execution to meet your needs
- A dedicated deal team managing all facets of the transaction
- One point of contact for our client liaising with banks, lawyers and other stakeholders for syndicated loans
- A managed process driven to ensure timelines are achieved
- Reduced management time required freeing you up for other activities
- Market knowledge on documentation challenges from various banks
MUFG offers a truly global network, with a syndicated loans team of over 200 people, based across eight locations (Dubai, Hong Kong, London, New York, Shanghai, Singapore, Sydney and Tokyo).
These teams work closely together to ensure the best possible outcome for clients. Recent awards for their work include Global Capital's 'Best Arranger of Loans, Middle East' in 2015.
Syndicated/Club vs Bilateral Loans
If you are unsure whether a syndicated or bilateral loan would be most appropriate for your business, please contact our team using the details above. To help give an overview of each product, below we have listed potential advantages and disadvantages of using each.
Syndicated or Club loans:
- Well-established and flexible loan product
- No dependence on one bank - most decisions/actions subject to majority bank voting
- Larger amounts can be raised
- Borrower has a single point of contact (or 'agent') for all drawdowns, requests, information distribution etc and single settlement
- Common document, terms and covenants. Easy to implement a uniform financing strategy
- Provides visibility and builds reputation and profile in capital markets
- Potentially lower cost
- There is a need for pricing consensus amongst syndicate banks
- Costs incurred for the agent bank role
- Consent/waiver mechanics
- Can mix terms, conditions and maturities
- Transferability can be controlled/restricted
- Banks respond to you directly
- Potentially greater cost
- Time consuming for borrower
- Increased administrative burden for borrower
- Potential mismatch of terms/price
- Cross default considerations
- Low capital markets profile
- Greater refinancing constraints
- Potentially limited flexibility for event driven financing
MUFG signs world-first blockchain-based syndicated loan arrangement