This paper examines how syndicate structure affects the risk premium of international loan. Syndicate structure is an organizational response to informational frictions in the process of syndicate dealing. In a syndicated lending, lead arrangers retain fractions of the loan, but they act as the intermediary between the borrower and the syndicate participants. Between the two competing hypotheses of this paper ? concentration hypothesis versus diversification hypothesis, most of the estimations support the diversification hypothesis. Lead arrangers possess relatively better information on borrowing firm than participating banks while participating banks also possess their own information on the borrowing firm. As the risk of a borrowing firm increases, participating banks can join the syndicate while requiring high risk premium for participation and the associated diversification of syndicate structure. Lead arrangers would diversify syndicate structure while they have to provide appropriate risk premium to participating banks.