Risks associated with syndicated lending

the article is devoted to the study of risks associated with syndicated lending. Syndicated lending is an important instrument for financing large projects, where several creditors join forces to provide a single loan to a borrower. Despite its advantages, such as optimization of lending terms and provision of the necessary resources for the implementation of large-scale projects, syndicated lending is associated with a number of risks for both creditors and borrowers. The article considers the main types of risks: credit, operational, legal, market and currency. Particular attention is paid to the analysis of factors that can lead to disputes among syndicate participants, such as insufficient transparency of the terms of agreements, inconsistency of actions among creditors, changes in loan terms during the transaction and failure to fulfill obligations by the borrower. The practice of resolving disputes arising between syndicate participants and the borrower is also studied. The article discusses methods for minimizing risks, including competent drafting of contracts, the use of hedging, as well as arbitration and mediation mechanisms, which are the most effective ways to resolve conflicts in international practice. Based on the analysis of theoretical and practical aspects of syndicated lending, the article provides recommendations for syndicate participants and borrowers aimed at increasing the transparency of lending processes, effective risk management and minimizing the likelihood of disputes. It considers best practices and strategies that can be used for the successful implementation of syndicated loan transactions.

syndicated loan, lending risks, financing, agreement, lender, litigation, mediation