Prominent Finance & Investment Ltd.

Corporate Finance

Syndication Finance

Syndicated financing is utilized when a project requires a massive injection of capital that exceeds the capacity or risk tolerance of a single financial institution. In this arrangement, a group of lenders (the syndicate) works together to provide funds for a single borrower.

Prominent Finance & Investment Ltd. acts as both a participant and a Lead Arranger in syndicated loans. We utilize our vast network of banking and non-banking financial partners across Bangladesh to structure, underwrite, and manage large-scale credit facilities for mega-projects and corporate expansions.

Why Choose Syndication

Power of Partnership

Massive Capital Access

Secure the enormous funding required for national infrastructure, heavy industry, or massive real estate developments without being restricted by one bank's limits.

Single Point of Contact

Despite having multiple lenders, you interact primarily with the Lead Arranger, simplifying negotiations, documentation, and fund administration.

Competitive Pricing

Because the risk is distributed among multiple institutions, borrowers often benefit from more favorable interest rates and customized repayment terms.

Execution Strategy

How We Structure Syndication

Structuring a syndicated loan is a complex process that requires deep financial expertise and strong institutional relationships.

Mandate Generation: You appoint Prominent Finance as the Lead Arranger to manage the fundraising.
Structuring & Modeling: We prepare a comprehensive Information Memorandum and financial model for the project.
Syndicate Formation: We invite other banks and NBFIs to participate and distribute the credit risk.
Financial Closure: Contracts are signed, and funds are disbursed according to the project's milestone requirements.

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01 — THE LANDSCAPE

When one bank isn't enough, many stand together.

Bangladesh's largest infrastructure builds — power plants, port expansions, cement mega-units — rarely fit inside a single bank's exposure limit. Regulation caps single-borrower lending at 25% of a bank's capital base, which is why every landmark project of the last decade has been co-financed.

Syndication turns that regulatory ceiling into a collaboration opportunity — pooling balance sheets from commercial banks, NBFIs, and development financiers into one coordinated facility.

Bangladesh corporate syndicated loan skyline

25%

SINGLE-BORROWER CAP

02 — ANATOMY

Who Sits Inside a Syndicate

Each participant has a defined role, defined risk, and defined return — clarity is what keeps large deals from collapsing under their own weight.

ROLE 01

Lead Arranger

Structures the facility, drafts the term sheet, and takes the largest hold. Owns borrower relationship end-to-end.

ROLE 02

Underwriter

Commits to fund the full ticket even if other banks don't join — earning a premium for absorbing syndication risk.

ROLE 03

Participating Banks

Take proportional slices of the loan, share the security package, and vote on major waivers or amendments.

ROLE 04

Agent Bank

Neutral administrator — collects payments, distributes to lenders, monitors covenants, and reports to all parties.

03 — TICKET SIZE

Three Bands, Three Playbooks

The right syndication structure depends on ticket size — each band has its own arranger economics, timeline, and lender mix.

Club Deal

৳100 – 300 Cr

3–5 lenders, relationship-driven, closed in 6–8 weeks. Suited to established sponsors with clean CIB records.

Underwritten

৳300 – 800 Cr

Fully backstopped by 1–2 arrangers, then sold down to a wider bank group. Delivers speed and certainty of funds.

Mega Syndication

৳800 Cr +

10+ lenders across banks, NBFIs and DFIs. Requires full information memorandum, roadshows, and sponsor covenants.

04 — SECTOR FIT

Industries That Need Syndication Most

Power plant project finance syndicated loan

Power & Energy

IPPs, LNG terminals, transmission lines — long-tenor project finance with tariff-linked repayment.

Infrastructure

Highways, bridges, ports and rail — annuity or availability-payment structures with government offtake.

Heavy Industry

Cement, steel, fertiliser — capex-heavy expansions where scale unlocks per-unit cost advantage.

Real Estate

Township and mixed-use developments with phased construction draws and escrow-based cashflow.

05 — DEAL FLOW

From Mandate To Financial Close

W 1–2

Mandate

Term sheet signed, arranger fees fixed.

W 3–6

Diligence

Legal, technical, environmental review.

W 7–10

IM & Invites

Info memo circulated, banks invited.

W 11–14

Commitments

Underwriting locked, allocations set.

W 15–16

Financial Close

Docs signed, first drawdown released.

06 — PRICING

The Real Cost Of A Syndication

Beyond the coupon, four fee layers determine your all-in cost. We negotiate each one line-by-line so nothing hides in the margin.

Syndicated loan pricing financial modelling

Interest Margin

Benchmarked to bank rate + spread; the largest recurring cost.

Arrangement Fee

One-time fee to the lead — typically 0.75%–1.5% of ticket size.

Underwriting Fee

Premium paid to any bank taking hard commitment risk.

Agency Fee

Annual admin cost paid to the agent bank for coordination.

07 — DOCUMENTATION

Six Documents That Bind The Deal

Syndication is more document-heavy than bilateral lending because every clause has to work for every participating institution.

Common Terms Agreement

Master document binding every lender to identical covenants, security, and events of default.

Facility Agreement

Tranche-specific terms — tenor, drawdown schedule, interest reset, prepayment mechanics.

Inter-Creditor Deed

Governs how lenders vote, share security, and handle disputes among themselves.

Security Trust Deed

Appoints a security trustee to hold mortgages and hypothecations for the benefit of all lenders.

Escrow Agreement

Routes project cash flows through a controlled account for waterfall distribution.

Sponsor Support Deed

Promoter undertakings on cost overrun funding and debt service shortfall support.

08 — TRACK RECORD

Numbers That Speak Louder Than Slides

42+

Syndications Arranged

৳11,800Cr

Cumulative Ticket Size

Partner Institutions

96%

On-Time Financial Close

"When we needed BDT 640 crore to bring our second cement line online, Prominent Finance closed the raise in 14 weeks flat — three banks, one NBFI, no covenant surprises."

— CFO, Meghna Building Products Ltd.

Syndicated loan agreement signing ceremony

09 — READINESS

Are You Ready For Syndication?

If you can tick four of these five boxes, you're ready to mandate. If not, we help you get there first.

✓ Project or feasibility report by an independent consultant
✓ Land title & mortgage-ready documentation in place
✓ Sponsor equity of at least 25–30% already committed
✓ Clean CIB record for the borrower and all guarantors
✓ Three years of audited financials for the sponsor group

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