Participation Financing (Noun)
Meaning
A loan that is shared by a group of banks that join to make a loan too big for any one of them alone.
Classification
Nouns denoting possession and transfer of possession.
Examples
- The company's large-scale project was made possible through participation financing by a consortium of international banks.
- Participation financing allows multiple lenders to share the risk and benefits of a large loan, making it more manageable for all parties involved.
- The syndicate of banks provided participation financing for the construction of the new highway, with each member contributing a portion of the total amount.
- Participation financing is often used for large infrastructure projects that require significant funding and pose a high level of risk for a single lender.
- The bank's participation financing department specializes in structuring and managing large, multi-lender deals for corporate clients.