Banking & Finance

banking and finance

Our Banking & Finance practice has experienced a vast range of important changes through global and regional consolidations of business and financial markets, alongside with increased regulation. For Malta and Cyprus, the integration of their national markets with the European Single Markets, as well as global financial crises have been significant catalysts and have shaped the financial frameworks through which companies can now operate.

At Chetcuti Cauchi, we have set up our Banking & Finance practice with the aim to help corporations with their banking and finance transactions. Such transactions include borrowing money to finance the company’s enterprises and promote development and growth, and raising capital for various large-scale projects. Our Banking & Finance specialists also work closely with our structured finance practice in order to deliver the most comprehensive advice on syndicated loans, bank lending, acquisition finance (including leveraged finance), project finance, real estate finance, asset finance, Islamic finance and financial services regulation.

Syndicated Loans

Syndicated loans, also referred to as syndicated bank facilities, are ideal loan structures for large single borrowers such as large corporations, special projects or even sovereignties such as governments, which plan to undertake a large project which requires more capital than what a single lender can offer. Syndicated loans are also opted for when a project requires a specialised lender which has experience in a specific asset type. This form of loan is offered by a group of lenders, known as a syndicate, that will work together to provide capital for a large-scale single borrower's activities.

A syndicated loan may take the form of a fixed amount of funds, a credit line, or alternatively, a combination of the two. The syndicated bank facility allows borrowers to access the capital they need while ensuring that the risk of a borrower is spread among different lenders, such as banks and institutional lenders (including pension funds and hedge funds). This ensures that if the borrower defaults, no single lender is left irrevocably crippled, and correspondingly, the borrower will not be affected too negatively if one of the lenders falters.

Furthermore, syndicated loans may be used in the leveraged buyout sphere to provide the finance for large corporate takeovers with primarily debt funding.

Generally, the first step in attaining a syndicated loan is to find an arranger, that is, a lead bank or underwriter of the loan which will act as the main lender by putting up a proportionally bigger share of the loan, or carry out various duties which may include diffusing cash flows amongst other syndicate members, and carrying out administrative tasks.

Through our Banking & Finance practice, our firm is able to assist you through the process of acquiring and managing a syndicate loan, thus ensuring that your largest and most significant transactions are being managed by professionals with vast experience in the banking & finance field.

Our Banking & Finance Practice

Apart from advising on complex large scale transactions such as syndicated loans, our banking & finance practice is fully geared to offer its services to any kind of companies even during the most challenging times, be it budding entrepreneurs to large corporations taking on huge transactions. Our Banking & finance team consists of a multi-disciplinary group of experienced lawyers from our BankingCapital MarketsCorporate,TaxLitigation and Real Estate practices who have an unrivalled breadth and depth of experience in working with Banks in Europe, the Americas and Asia. We offer advice on a vast spectrum of banking & finance matters, including the granting of loans, property loan transactions and mortgages, syndication, collateral, security enforcement, professional secrecy, online banking transactions, e-commerce transactions and merchant accounts and general licensing as well as compliance issues.

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Key Contacts

Mr Steve Muscat Azzopardi

Senior Manager, Corporate & Fintech

+356 22056438

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