(1) A pair of local currency LOANS between two companies, documented under a single agreement providing for the right of OFFSET, which allows the companies to onlend the local currency funds to their own subsidiaries and eliminates the need for the subsidiaries to source their own local financing. (2) A loan commitment from a BANK to a real estate developer that includes a construction loan for initial building and a permanent MORTGAGE loan for ongoing financing once the project has been developed. (1) See also PARALLEL LOAN.

More On This Topic

Link to This Definition
Did you find this definition of BACK-TO-BACK LOAN helpful? You can share it by copying the code below and adding it to your blog or web page.
Written and fact checked by The Law Dictionary