Pari-passu
When several lenders jointly finance the same assets, this is referred to as co-lending. A co-lending solution requires that lenders enter into a “pari-passu” or “asymmetrical” agreement that establishes how sums will be allocated between each creditor in case of realization. In a pari-passu co-financing agreement, in vertu of which all lenders are of equal rank, the sums would be allocated at the pro rata of the balance due to each lender. In an asymmetrical co-financing agreement, the sums would be allocated according to a predetermined percentage. The type of agreement (pari-passu or asymmetrical) will depend on how the lenders want to share the realization proceeds, if such an event were to occur.