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Erudite AfricaCenter of Excellence
← Syndicated Loans and Cross-Border Project Finance

Why banks syndicate: exposure limits, capital and the participation decision

Module 01 / 5 · 65 min · Free preview

Work out how much of a large Ethiopian deal one bank can and should hold, and why the rest must be shared.

In this module you will learn to

  • Apply the SBB/87/2024 large-exposure rules, including connected counterparties, to a proposed ticket
  • Measure the capital a syndicated share consumes under SBB/95/2025
  • Explain the roles of arranger, agent, security agent and participant, and what each one owes the others
  • Decide whether to join a syndication, and at what amount, from an information memorandum and your own headroom

Built on

  • Erudite Africa course specification 1.o: Syndicated Loans and Cross-Border Project Finance, Levels 1 and 2 (October 2026)
  • Erudite Africa Training Module: Ethiopian Context, programme overview and regulatory register (October 2026)
  • NBE directives as listed in the lessons: SBB/87/2024, SBB/88/2024, SBB/90/2024, SBB/95/2025, SBB/96/2025, NBE/INT/13/2026, FXD/01/2024 and FXD/04/2026
  • A commercial bank's Revised Credit Procedure Manual (August 2025), unnamed
  • Banking Business Proclamation No. 1360/2025; Public Private Partnership Proclamation No. 1076/2018 as amended; Ministry of Finance Public Sector Debt Statistical Bulletin No. 56
  • Loan Market Association documentation conventions, IFC Performance Standards, Equator Principles and MIGA cover types (general market practice)

Examples and companies are fictional. Bank practices are shown as typical Ethiopian practice, not as any one bank's policy. Always apply your own institution's approved policy and the current NBE directives.