Syndicated Loans Introduction Current-state background Syndicated loans provide clients with the ability to secure large-scale diversified financing at the current market rate. These loans are funded by a group of investors (e.g. syndicate), where one investor serves as the lead arranger. The lead arranger serves as the underwriter for the loan and performs all administrative tasks throughout the loan life cycle, charging a fee based on the complexity and risk factors associated with the loan. Key ecosystem stakeholders Overview • The US market is dominated by incumbents: Four US FIs accounted for Regulator Lead Arranger more than 50% of the market share (US$ 1,917 billion total volume) in 1 2014 • The EMEA market is large: The total EMEA syndicated loan volume in 1 2014 amounted to US$ 1,214.5 billion • The Asia-Pacific market is growing: The Asia-Pacific (ex-Japan) syndicated loan volume increased by 22% in 2014, bringing total volume to US$ 524.2 billion1 • The Latin American market is immature: The total Latin American 1 syndicated loan volume in 2014 amounted to US$ 42.2 billion Requesting Syndicate DLT has the potential to optimize syndicated loan back-office operations. This Entity use case highlights key opportunities in the end-to-end syndicated loan process 1. Global Syndicated Loans: League Tables 2014, Bloomberg, 2014. WORLD ECONOMIC FORUM | 2016 66