QUESTION ONE

a). Outline and explain, in detail, at least two benefits and two risks association with the syndication process to both borrowers and lenders in an economy of nations such as Zambia. (20 Marks) In your view, why would small scale maize traders use the syndication process to leverage their business transactions in Zambia?(5 Marks) b). Briefly outline 2 risks managed by financiers in syndicated facilities. (5 Marks) c). Syndicated loans facilities are credit facilities which are basically financial assistance programs designed to help financial institutions and other institutional investors to draw notional amount as per the requirement. d). There are various types of syndicated loan facilities and the following are the main ones: a revolving credit; a term loan; an Letter of Credit and an acquisition or equipment line also known as a delayed-draw term loan. i). Explain the essence of syndicated loans to the financier and the end-user (5 marks). ii). Describe what these types of loan syndication entail and their relevance to the end-user. (5 Marks)