Syndication and transfer of loans

This overview is a guide to the Banking & Finance content in the Syndication and transfer of loans subtopic, with links to appropriate materials.

Why lenders transfer loans

There are times when a lender might want to get back some of the money it has lent to a borrower before the borrower is due to repay it.

If the borrower is performing its obligations under the loan agreement, the lender cannot demand early repayment of the loan or take any steps to recover amounts from the borrower. The only option therefore, is to look to transfer the loan to another lender.

Transferring the loan might be the objective from the outset of the transaction. For example, on syndicated transactions, one or more lenders underwrite the facilities with a view to transferring some or all of their commitments once a syndicate of lenders has been formed. Commitments may then continue to be transferred during the life of the facility in the secondary market.

Transferring loans also enables a lender to:

•
change the profile of its balance sheet to ensure that it meets internal and external capital

To view the latest version of this document and thousands of others like it, sign-in with LexisNexis or register for a free trial.

TAKE A FREE TRIAL

Latest Banking & Finance News

HM Land Registry updates Practice Guide 82

HM Land Registry (HMLR) has updated Practice Guide 82—Electronic signatures accepted by HMLR. Sections 3.1, 3.2, 3.3.1 and 5.2 have been amended to clarify that when using a conveyancer-certified electronic signature, the electronic document stored within the signature platform constitutes the original deed or document. It is not acceptable to print or electronically store a copy outside the platform and add the date to that copy instead of dating the original electronic document within the platform. Section 12 has also been updated to include two key reminders regarding the use of conveyancer-certified electronic signatures.

ISDA launches consultation on CDS auction lock-up agreements

The International Swaps and Derivatives Association (ISDA) has published a consultation paper proposing new solutions for handling lock-up agreements in Credit Default Swap (CDS) auctions. The proposal seeks to establish a uniform treatment of Locked Up Debt within CDS settlement processes—addressing issues related to market squeezes and auction timing. It responds to concerns about the disproportionate impact of Lock-Up Agreements on CDS settlements during restructuring and bankruptcy scenarios. Market participants are invited to submit feedback on the proposed solution by 8 August 2025 to Fred Quenzer, Senior Counsel, America, at fquenzer@isda.org.

ISSB consults on amendments to SASB Standards and IFRS S2 guidance

The International Sustainability Standards Board (ISSB) has published two exposure drafts proposing amendments to the Sustainability Accounting Standards Board (SASB) Standards and consequential amendments to the industry-based guidance on implementing International Financial Reporting Standard 2 (IFRS S2). The proposals include: (1) a comprehensive review of nine priority industries (all eight industries within the extractives and minerals processing sector and the processed foods industry); (2) metric alignments across 41 additional industries covering topics such as water management and workforce health and safety; and (3) updates to the IFRS 2 industry-based guidance to maintain alignment with climate-related content in the SASB standards. Final amendments are expected in 2026, subject to stakeholder feedback. Before the end of 2025, the ISSB will also publish exposure drafts for proposed enhancements to three further SASB Standards: electric utilities and power generators, and two standards in the food and beverage sector. It will consider an additional group of industries for prioritisation for future enhancements later in 2025.

FCA publishes CP25/20 on SI regime for bonds and derivatives and discussion paper on equity markets

The Financial Conduct Authority (FCA) has published consultation paper CP25/20 on the systematic internaliser (SI) regime for bonds and derivatives, alongside a discussion paper on equity markets. The consultation follows the removal of pre-trade transparency from SIs’ obligations in bonds and derivatives and seeks views on the future of that regime. The FCA aims to give effect to new SI rules in Q4 2025 and ensure continued alignment between the transparency and SI regimes. Responses are sought by 10 September 2025, with final rules expected in Q4 2025.

View Banking & Finance by content type :

News