The syndicated loan/club deal is a credit facility grated by two or more banks who work together to provide funds for a single borrower. The borrower can be a corporation, a large project or sovereignty, such as a government. The loan can involve a fixed amount of funds, a credit line or a combination of the two.Syndicated loans arise when a project requires an amount too big for a single lender or when a project needs a specialized lender with expertise in a specific asset class. Syndicating the loan allows banks to spread risk and take part in financial opportunities that may be too large for their individual capital base.