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Lma Agreement Syndicated Loan

The increase in credit needs in the 1970s meant that credit facilities, traditionally provided on a bilateral basis, were increasingly replaced by larger lines of credit from a club of lenders, and then by syndicated credit facilities in the wider market. In the United States, alongside demand for bank balance sheets, a more formal secondary market developed in the 1980s and, in the 1990s, with the proliferation of asset-hungry non-bank lenders. The own-account credit market began to grow and first crossed the Atlantic over the London units of US banks to Europe. Founded in late 1996, loan Market Association (“LMA”) is the commercial organization of the syndicated credit market in Europe, the Middle East and Africa (“EMEA”). Following positive feedback from members on the draft order account and in response to members` request, the drafting of a standard private placement form began, the documents of which were introduced in January 2015, both in loan and debt format. The project benefited from the participation of the International Capital Market Association (“ICMA”) and ACT. This provided valuable input, notably on the format of notes (developed in consultation with ICMA) and on the concerns of borrowers/issuers (in the case of ACT). In 2012, a commercial real estate financing document for multi-portfolio investments was launched, as well as a development markets facility agreement and a pre-export finance facility agreement. In 2013, a single agreement on real estate development finance and four other facility schemes were placed on the market for operations in development markets. In 2014, the LMA strengthened its documentation in these areas, with the publication of an interconnection agreement on real estate financing as well as facility agreements for operations in Kenya, South Africa, Tanzania, Uganda and Nigeria. A robust and liquid secondary credit market is an important part of the health of the union credit market as a whole.

In this context, this guide aims to assist market participants and their advisors involved in the granting and execution of syndicated loans in the primary market, by highlighting certain issues that may affect liquidity in the secondary market. The results of a survey of AML members conducted in late 2019 indicate that market participants are cautiously optimistic about the outlook for 2020, although the results take into account some of the challenges of the global environment. . . .