Syndicated lending plays a very important role in international financing and economic growth, facilitating the financing of large transactions whilst allowing Banks to more effectively manage their own Balance Sheets, their ALM risks, generating fee income and keeping exposures within their appetite.
In the last several years the popularity of this type of lending has exploded. By 2019, it was estimated that the syndicate loan market reached about USD 750 bilion. The businesses that are shoosing this option tyo finance their growth have expanded beyond the Fortune 500 companies that were its first users. Initially developed to address the needs of huge, acquisition - hungry companies, they have now become a flexible funding source for SMEs that aim at moving into larger status.