On April 15, 2013 Oleksander Plotnikov, Counsel at Arzinger, Head of the Banking and Finance Practice, presented his report “Syndicated lending for Ukrainian banks” at the workshop organized by the Independent Bank Association of Ukraine (NABU) dedicated to the issues of syndicated lending.

A syndicated facility is a loan given by a group of creditors which is structured, organized and administrated by one or several commercial or investment banks. It is a flexible and effective financing instrument which, according to Oleksander, makes the process of financing and administration rather simple because the borrower concludes one agreement with several creditors instead of a number of bilateral agreements. At this, the drafting and conclusion process takes more time and, respectively, it is much more difficult to amend such agreement.

There are three main types of syndicated facilities: Term Loan Facility, Revolving Loan Facility and a combination of both. Oleksander spoke in detail about each of them, named participants of syndicated lending, presented an algorithm how creditors make lending decisions and described documentation required for syndicated lending.

He also gave special attention to the taxation of payments under syndicated facilities.