The Loan Market Association

The following Restructuring & Insolvency practice note provides comprehensive and up to date legal information covering:

  • The Loan Market Association
  • Aims of the Loan Market Association
  • LMA standard documents
  • Intercreditor agreement

The Loan Market Association

Aims of the Loan Market Association

The Loan Market Association (LMA) was established in 1996 as a trade body with a key objective of improving liquidity, efficiency and transparency in the primary and secondary syndicated loan markets in Europe, the Middle East and Africa (EMEA). For further details, see: LMA website.

The LMA aims to establish sound, widely accepted market practice to promote the syndicated loan as one of the key debt products available to borrowers across the region. Syndicated loans are provided by a group of lenders as opposed to bilateral loans, which are traditionally between the corporate debtor and a single bank.

The LMA works with lenders, law firms, borrowers and regulators to educate the market about the benefits of the syndicated loan product, and to remove barriers to entry for new participants.

Members of the LMA include: commercial and investment banks, institutional investors, law firms, service providers and rating agencies. 

The work of the LMA includes:

  1. creating industry standard documentation

  2. lobbying regulators and government bodies to ensure that any new or revised regulation does not have an adverse impact on the syndicated loan market

  3. providing training and events for its members throughout the EMEA region

  4. establishing wide-ranging market guidelines for both the primary and secondary EMEA syndicated loan markets

LMA standard documents

The LMA produces recommended documentation for use in the primary and secondary loan markets

Popular documents