Participations Sold are a type of financing utilized above all in international large-scale lending when the order amount or business volume is too high for an individual institution or if this could lead to one-sided business risks. The bank that provides the participation (participation provider) acts as lead manager in the syndicate and distributes the risk arising from the underlying transaction to several
For customers, the benefit of this form of financing is that they merely need to communicate with the lead manager and will be granted uniform conditions, saving the need to contact and establish business relations with a large number of different institutions with possibly different terms and conditions.
The Participations Sold panels are included in the opening transactions of the Import L/C, Export L/C and Guarantee and Advances business sectors and are used to capture the participants, who can be defined via the roles TP0 to TP9. Only one part of the participation is entered for each participants, with the total amount not exceeding 100% of the risk amount.