Mandated Lead Arranger (MLA)

In finance, the term mandated lead arrangers (MLA) denotes an entity which determines the terms and conditions of a syndicated loan. The primary purpose of an MLA is to structure loans in such a way as to make them attractive to lenders. MLAs also mediate between borrowers and lenders.

The term is most widely used in relation to high-value syndicated business loans. MLAs are typically investments banks which negotiate and structure business loans and typically provide a significant portion of the capital required. By backing a syndicated loan, an MLA shows good faith in a business and encourages other lenders to participate in the syndicated loan.

When a syndicated loan has a single MLA, the MLA is known as the sole mandated lead arranger. An loan may also have multiple MLAs (the joint mandated lead arrangers of the loan).

More on this topic:
Swiss business loan comparison