![]() The pre-mandate phase, the post-mandate phase, and the post-completion. The syndication process is sequential and is broken up into three phases. This article will then conclude by answering the question: Is transitioning from the role of lead bank to the role of agent bank a worthwhile endeavour? Then it will identify the legal risks that the agent bank is exposed in its fiduciary capacity and useful mitigation techniques. It will then identify the legal risks that the lead bank is exposed to when drafting syndication documentation and useful mitigation techniques. ![]() This article will start by briefly identifying the syndication players and give an overview of the syndication process, for context. Outside of the project risks that a bank needs to be aware of, when syndicating there are a host of other legal risks presented to the bank assuming the role of lead bank or agent bank (in so far as their duties to lending banks are concerned) and an even more unique question arises for the bank that takes on both roles. However, there are several instances where multiple banks come together to lend money to a borrower, at the same time and for the same purpose, in order to cover the loan commitment. The sums required (and provided) can flow into the hundreds of millions. In many cases, a single bank can provide the financing required to bring a massive infrastructure or energy project to life.
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