Benefits for Banks
- Gaining an attractive addition to existing client rosters
- Recognition both locally and beyond from being part of the utility system’s financing team
- Supportive of local and regional community development and jobs creation.
- Diversification of lending sources viewed positively by credit rating agencies
Because of the large amounts often taken in utility financings, local and regional banks would tend to receive substantial revenue on single loans, as well as further revenue from the re-lending of utility interest proceeds. As local and regional banks become involved in these lending opportunities, CFSD believes that additional syndication opportunities are likely to follow.
- A strengthened loan portfolio resulting from the higher-than-average credit ratings of utilities allowing the banks to loan more of their resources to local businesses.
- Increased credibility and recognition resulting from participating in major company loan syndication.
- Opportunities for participation in subsequent utility and non-utility syndications.
- Community goodwill resulting from publicizing job creation and subsequent lending made possible through utility syndication participation.