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Posted: Tue Sep 27, 2011 10:04 pm
by jghn

Can someone give an idea about Participation/Syndication Guarantees?



Posted: Wed Sep 28, 2011 9:12 pm
by picant
Hi Pal,

Syndication/participation mean IMHO, that a company has no full credit line with one bank/guarantor to afford a specific transaction so it asks some banks to partecipate to issue a guarantee for the credit line they normal grant to the company to a lead bank. So, a bank will issue 100% guarantee that will be counterguaranteed by other banks in percentage. May be the difference could stay in the fact that in syndication the issuing bank risks 100% covered by guarantee for ....% and in participation any bank will risk the granted percentage only:
Other comments appreciated