When you cannot lend directly (2011年老文翻新)

Facts: Due to the regulatory restriction, the lender cannot grant the loan directly to the borrower.

Question 1: What are you going to do? Below is a possible solution:

Question 2: How to structure the pricing structure?

Question    3: If the fronting bank doesn't want to use its own cash/source to fund the loan, what's the alternative?

P.S.: Read and Learn

In the context of syndicated credit facilities, a lender which issues a letter of credit, bond or guarantee on behalf of the lenders in the syndicate. The fronting bank is directly liable to the beneficiary for the full amount of the letter of credit, bond or guarantee but is counter-indemnified by the syndicate lenders pro-rata to their participation in the relevant facility. The beneficiary does not have any direct payment rights against the syndicate lenders.