Loan Syndication

give SYNDICATION AS AN ALTERNATIVE BUSINESS support STRATEGY IN NIGERIA hold over OF CONTENT Title page Approval page Dedication cite Abstract CHAPTER ONE INTRODUCTION 1. Background of the training 2. Statement of the problem 3. Objectives of the study 4. Significance of the study 5. Scope, limitations and delimitations 6. Statement of hypothesis 7. Definition of terms. CHAPTER TWO REVIEW OF RELATED LITERATURE 1. Types and sources of giveword to confederation brim of Nigeria Plc. 2. Factors to be considered by Consortium of Financial Institutions before giving give away Loans to agate line Organization. . Factors to be considered by Union Bank of Nigeria before using Loan syndication as a source of finance. 4. Securities and interest pass judgment acceptable to the Union Bank of Nigeria. CHAPTER THREE RESEARCH DESIGN AND METHODOLOGY 1. Sources of data 2. Survey tool or Instrument of Data show. 3. Location of data 4. Research questions. CHAPTER FOUR DATA PRESENTATION AND synopsis 1. Presentation of Data 2. Analysis of data 3. Interpretation of Data. CHAPTER FIVE FINDINGS, CONCLUSION AND RECOMMENDATION 1. Findings 2. Recommendation 3. terminal Bibliography Appendix PROPOSALLOAN SYNDICATION AS AN ALTERNATIVE BUSINESS FINANCING STRATEGY IN NIGERIA Lack of computer memory has been hotshot of the major problems militating against the progress and growth of our business judicatures in Nigeria. This is ca using upd by a lot of factors such as low savings (vicious circle of poverty), ignorance of the public to invest, mismanagement etc. there are mevery ship canal of solving the problems of finance and providing adequate finance to our business organizations such as equity stock, savings, ploughing fundament profits, but for the purpose of this research, we have to pay attention to impart syndication.This research leave focus on the appraisal of the methods and slipway through which Union Bank of Nigeria Plc source for fund in abidance of bestow from a group of fiscal existences such as commercial depones, merchant banks, insurance companies, development banks and financial institution wish well authoritiess thrift societies friends. It forget also focus on the different classes of bring notably, long add, median(a) term bringword, and short term loan.The classes of loan pop the questiond by the different types of financial institutions enumerated above will also be considered by Union Bank of Nigeria before using loan as a source of finance instead of other sources. Similarity, it is also pertinent to treat the factors, which are considered by kitty of financial institutions before giving unwrap loans to business organizations. The securities and interest rates treatment acceptable to the puddle will also be look into. Also, the reason why some financial institutions do not go into loan syndication will also be inquired into.Before ending this research, it is important to study how the interest of the dispo sition is protected in the Union Bank of Nigeria as well as how the interest of each atom of the consortium is protected within the group. These guides enumerated above when treated, Union Bank of Nigeria chooses to finance their projects and curiously loan syndication and we tone of voice anybody who enjoys it. Summarily, the research play will be grouped into five chapters. Chapter one will contain the introduction, sub- contents as background of study, statement of problem, objectives of study, significance of study and so on.Chapter two contains the literature review. This chapter will give the flesh out analysis of the topic. It is here that we state the meaning of the topic of the research different types of syndicated credit finance, the procedures for syndicating a loan etc. Chapter three will cover the research methodology and techniques. The sources of data, the instrument of data of data collection and the place the data is located. Chapter four, which is the data p resentation and analysis will show the presentation of the data roll up both in tables and charts, pie chart may also be used. Fin bothy, chapter five which summaries the other chapters.The findings recommendations and the conclusion will be contained in this chapter. Having said much, this research study will be specifically limited to Union Bank of Nigeria Plc Onitsha Anambra State. CHAPTER ONE 1. 1 INTRODOUCTION OF THE see The velalive insufficiency of fund for capital investment is a roughhewn factor in every economy specially in developing counties of the world. In developing counties like Nigeria the low level of capital investment manifest in high unemployment rates low productivity and corresponding low standard of living for greater majority of the population.Finding a solution to this problem of providing fund for capital investment has been a major pre-occupation of financial institutions in Nigeria. Beyond the traditional term loan share offers bonds and on business organizations and financial institutions alike have sought out avenue to swindle the problem of insufficient fund for capital investment. One of the solutions they have come up with is syndicated loan or multiple credit facilities , which is aimed at spreading risks and weakening the impact of restricting laws and regulation on loaning by financial institutions .Syndicate has been defined as an association of industrialist, or financial or banking consortium constrained to carry out some industrial projects. Accordingly, loan syndication is basically defined as an agreement in the midst of two or borrower with credit facility utilizing common loan documentation. The spectacular growth of loan syndication as an resource financial instrument for business organization occurred as response to several economical factors in Nigeria. Notable among these were The National industrial policy of 1989, which is aimed at achieving, accelerated pace of industrial growth in Nigeria economy. The Introduction of structural adjustment programmed in 1986, culminating in the establishment of foreign Exchange market (F E M) and depreciation of the aria, This do imported machinery and equipment very expensive and requiring hung capital outlays which most companies or financial institution can not comfortably afford. Restriction on credit expansion by government and pecuniary authorities to minimize inflation. Central bank of Nigeria dose not included syndicated loan finance with in the credit checking, banks are there fore, able to syndicate loans with out interfering with the credit ceiling. The scrapping of import certify regime which enabled to a greater extent users of imported equipment and machineries to source and bring into the country. Deregulation of interest rate made loan syndication attractive to both business organizations and financial institutions. The above factors concerned with the persistent domestic inflation and arising price of domestic production have increased the magnitude of credits demand by vanoys users of fund particularly the industrial producers.In addition, there are certain legal and regulatory limitations on modify activities of commercial and merchant banks such as the statutory lending limit as yieldd in the banking act of 1969s. 13 (1) , the fluidness requirement ,e t c . In order to surmount these legal and regulatory limitations on lending activities of commercial bank (union bank) and merchant banks, loan syndication has become an attractive credit delivery technique aimed at spreading risks reducing the impact of the restricting laws and regulations.Currently, there exists no comprehensive enacted law on loan syndication in the country as to regulate the activities of the financial institution that lead and participate in the syndication. What is mayhap significant about loan syndication in the country is not the rapid growth of the financial institutions have-to doe with loan syndication, but their act ivities which have been quite remarkable over the years.Also, the study of the extent to which union bank of Nigeria plc employ syndicated loan as an alternative backing means with particular reference to Anambra and Enugu states respective financing means with loan as an alternatively have been carried out in this study. The researcher carefully appraised all aspects of loan syndication as financing alternative in the country from the point of view of the borrower. It is also made clear in this work that consideration of numerous merits of syndicated loan financing as against its demerits.It is not to be used as a last resort but should be considered alongside with equivalent alternatives. each(prenominal) these notwithstanding the most important of this study (it empirical study) is to know the popularity of syndicated loan financing among business organization in the country and the extent to which they employ it as financing alternative, no such study has been carried out in N igeria. For the empirical study, Anambra and Enugu State respectively have been chosen due to constraint imposed by cost and short-term on the researcher, otherwise the researcher could have conducted the look back throughout the country. . STATEMENT OF paradox There are conflicting views as to whether business organizations should be financed by syndicated loan or not. The electric resistance to the use of this alternative, especially in Nigeria, argues that syndicated loan is expensive and involves much administrative work. Also, there is need to point out in every clear terms the advantages inherent in syndicated loan as medium and long term financing alternative. Besides, a review of the role of financial institutions in financing Nigeria business organization through syndicate loan is of paramount importance.In addition to the above, the extent to which syndicated loan financing is embraced by Union bank of Nigeria Plc. In the country need to be studies to know actually whet her the much emphasized syndicated loan financing is being use as financing alternative in Nigeria. 3. OBJECTIVE OF THE STUDY The purpose of this study includes inter-allies An examination in general terms of the assorted issues involved in loan syndication. To find out whether loan syndication is really a new approach to or another form of borrowing. To synthesize the merits and demerits of syndicated loan-financing vis-a-vis other sources of medium and long-term financing both by cost and codeless. To survey the extent and prospects of loan syndication business in Nigeria analyzing critically the role of business organizations and financial institutions. To find out whether loan syndication can help in industrial development of the country, especially under the current economic situation. To examine the extent of penetration of syndicated loan financing among business organizations in the country. 1. 4SIGNIFICANCE OF THE STUDYThis study will be of crucial gain to the borro wers. The attention of the researcher was drawn by the need for loan syndication in Nigeria especially in the area of providing the borrower with credit facilities. This becomes obvious that will be a need to grant study that could examine loan syndication as it affects the investment and capital project outlays. Therefore, the significant of this study is to look into ways of making it easy for financing a capital project outlays which requires a syndicated loan, and also to encourage financial firms to jointly finance project which one financial firm cannot single handedly finance.It is hoped that after this study. It will be useful to every bank especially those in merchant banking and development banking. It will also provide information to general public on how to employ loan syndication as alternative business financing. This work is expected to be of immense values to the students in financial studies and other related courses mostly accountancy, banking and finance and so on , since this is part of what they are going to practice in their various place of work.Lastly, it will and government and other institutions to formulate suitable policy that will guide them in financing a bounteous projects jointly with other financing firm. 1. 5SCOPE OF THE STUDY This research work only covers the loan syndication as an alternative business financing strategy in Nigeria. I took a close looks at the needs, functions and various benefit associated with Nigeria loan syndication. LIMITATIONS OF THE STUDY The first limitation, which was obvious, is the dearth of statistical data.Lack of statistical data from our financial institutions like rally bank of Nigeria (CBN), ministry of finance, including commercial and merchant banks where the researcher visited at Enugu, Onitsha and Lagos to collect list of corporations they have financed through syndicated loan adhered strictly to the rule of secretly in banking, thus they refused to release such information. Another pro blem is the while constraint. A research of this nature need relatively long time during which information for high-fidelity infirmness could be drawn, the period for the study is short , hence time posed as a constraint to the researcher.Lastly, as the cost, the researcher would have extended the survey to other states at the empirical level and this would have produced accurate and more comprehensive work but for the hinge cost of transportation and accommodation in the various state of the federation. It is not possible. 1. 6 STATEMENT OF HYPOTHESIS Ho syndicated loan has been employed against other alternatives as a medium long term financing strategy. Hi syndicate loan has not been employed against other alternatives as a medium long term financing strategy. Ho does syndicate loan has any impact on our national economy?Hi syndicated loan has much impact in our national economy. Ho syndicated loan has much impact in our national economy. 1. 7 DEFINITION OF impairment The rese arch topic has some key words, which call for treatment before anything else. SYNDICATE It has been defined as an association of industrialist, or financials or banking consortium forced to carry out come industrial projects. LOAN SYNDICATION It is defined as an agreement between two or more lending financial institutions to provide a borrower with credit facility utilizing common loan documentation. great Instructions Start here- PLEASE, scar the following instructions and information if you will like to order/buy our complete written significant(s). return that our approved websites are www. careerslight. com or www. trustyprojects. com and our official earpiece numbers are 08169533305, 08158646653, 08126773402. Take Note of our websites and phone numbers or write them down. 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