Co-financing

Co-financing

A type of financing in which the different lenders agree to fund under the same documentation and security packages but may have different interest rates, repayment profiles, and terms.

Co-Financing

The act or practice in which two different lenders agree to finance a single project for a borrower. For example, two lenders may agree to extend loans to start a business. The co-financiers use the same information and documentation when executing this arrangement, but the loans may have different terms. See also: Cofinancing agreement.