B-Loan Structure

In a typical loan syndication structure, the IFI extends a loan to a borrower. The IFI keeps part of the loan for its own portfolio (the A-loan) and syndicates the remainder of the loan to private sector lenders (the B-loans). The IFI remains the Lender of Record and the Servicing Agent for the syndicated loan. A-loans and B-loans rank pari passu and the proceeds of all loans are shared accordingly.

B-loan participations offer Cordiant an opportunity to participate in carefully appraised and market priced project or corporate loans and to do so under the IFI's "creditor umbrella". Through B-loans, Cordiant, while sharing completely the commercial risk associated with the investment, benefits from the advantages that the IFIs derive from their status as multilateral development banks (see Preferred Creditor Status).The B-loan program enjoys a history of exceptionally low write-offs.