Syndicated Loans

TEMENOS T24
Syndicated Loans
User Guide
No part of this document may be reproduced or transmitted in any form or by any means,
electronic or mechanical, for any purpose, without the express written permission of TEMENOS Holdings NV.
Copyright 2005 TEMENOS Holdings NV. All rights reserved.

Syndicated Loans
Table of Contents
Overview.................................................................................................................................................. 6
Setup ....................................................................................................................................................... 8
Functions Supported ............................................................................................................................ 8
Products ............................................................................................................................................... 8
Interest Application .............................................................................................................................. 9
Payment Method .............................................................................................................................. 9
Interest Basis.................................................................................................................................... 9
Interest Types................................................................................................................................. 10
Holding Rate................................................................................................................................... 10
Differential Rates ............................................................................................................................ 10
Application of Interest Rate ............................................................................................................ 10
Discounted Deals ........................................................................................................................... 11
Special Basis Interest ..................................................................................................................... 11
Commitment Fee ............................................................................................................................... 13
Charges & Fees ................................................................................................................................. 17
Rollover, Merger and Split ................................................................................................................. 17
Rollover .......................................................................................................................................... 17
Merger ............................................................................................................................................ 18
Split................................................................................................................................................. 19
Exchange Variance ........................................................................................................................ 19
SL.BUY.SELL - Buying and Selling operations ................................................................................. 20
Reducing Limit & Repayment Schedules .......................................................................................... 20
Architecture/Design ............................................................................................................................... 21
Parameter Files & System Tables ..................................................................................................... 21
SL.PARAMETER............................................................................................................................ 21
SL.ROLES ...................................................................................................................................... 23
SL.FACILITY .................................................................................................................................. 24
SL.PURPOSE ................................................................................................................................ 24
SL.STATUS .................................................................................................................................... 25
SL.CHARGE.ACTIVITY ................................................................................................................. 25
Collection of Multiple Fees in SL ....................................................................................................... 27
SL.FACI.RATES ............................................................................................................................. 28
SL.RATES.PART ........................................................................................................................... 29
Deal/Transaction Processing ................................................................................................................ 30
Non Stop processing ...................................................................................................................... 30
TEMENOS T24 User Guide

Page 2 of 151
Syndicated Loans
SL Workflow ................................................................................................................................... 30
Pre-syndication stage ..................................................................................................................... 31
Receipt of Mandate..................................................................................................................... 32
Underwriting particulars .............................................................................................................. 34
Recording Subscriptions ............................................................................................................. 36
Final allotment to participants ..................................................................................................... 38
Creation of Facility ...................................................................................................................... 40
Grant of Facility........................................................................................................................... 41
Carry Forward Facility................................................................................................................. 45
Commitment Availability/Suspension ......................................................................................... 45
Taxes .......................................................................................................................................... 45
Products ...................................................................................................................................... 46
Tranches ..................................................................................................................................... 46
Details of TRANCHE – 1 ............................................................................................................ 46
Currencies, Holding Rate & Exchange Variance........................................................................ 49
Group Lending ............................................................................................................................ 50
Loan Trading............................................................................................................................... 51
Drawdown management ............................................................................................................. 51
Participant Share ........................................................................................................................ 52
Overlapping Tranches ................................................................................................................ 52
Reducing Limit ............................................................................................................................ 52
Drawings under the Facility ............................................................................................................ 53
Drawdown Details ....................................................................................................................... 56
Backdated Loans ........................................................................................................................ 59
Interest Payment......................................................................................................................... 60
Liquidation Mode ........................................................................................................................ 60
Principal movement in an existing Loan ..................................................................................... 60
Share of Participants .................................................................................................................. 61
Holding Rate ............................................................................................................................... 62
Exchange Rate & Interest Rate Fixing ....................................................................................... 63
Types of Liquidation mode ............................................................................................................. 64
Writing Overdue files .................................................................................................................. 65
Part settlement of dues ...................................................................................................................... 68
Rounding Adjustments ................................................................................................................... 70
Adjusting for Skimming Income ...................................................................................................... 71
Settlement of dues ......................................................................................................................... 72

Page 3 of 151
Syndicated Loans
Rollovers ............................................................................................................................................ 73
Processing Rules ........................................................................................................................... 74
Business examples ........................................................................................................................ 75
Rollover .......................................................................................................................................... 79
Merger ............................................................................................................................................ 83
Split................................................................................................................................................. 87
Note on Reversal of SL.ROLLOVER .............................................................................................. 93
Buying and selling transactions ......................................................................................................... 93
Principal Increase ........................................................................................................................... 95
Principal Decrease ......................................................................................................................... 96
Sale / Purchase of Contingent portion ........................................................................................... 97
Sale / Purchase of non-contingent portion ..................................................................................... 98
Mere Participant Functionality ........................................................................................................ 99
Collection of charges ....................................................................................................................... 100
SL.CHARGE.ACTIVITY ............................................................................................................... 100
SL.CHARGE................................................................................................................................. 101
Repayment schedules ..................................................................................................................... 106
Revolving Facility ......................................................................................................................... 106
Non-revolving Facility ................................................................................................................... 108
Fixing interest rates ...................................................................................................................... 111
Diary of events ............................................................................................................................. 112
Guarantees and Standby letters of credit..................................................................................... 114
Balance files ................................................................................................................................. 117
Internal files .................................................................................................................................. 119
Accounting process ............................................................................................................................. 123
Initial Set-Up .................................................................................................................................... 123
Accounting entries ........................................................................................................................... 124
Parameter decisions ........................................................................................................................ 124
Accrual Methods .............................................................................................................................. 124
Rounding Options ............................................................................................................................ 125
Underwriting ..................................................................................................................................... 125
Grant of facility, drawings & rollovers .............................................................................................. 126
Close of Business Processing ............................................................................................................. 131
Limit ..................................................................................................................................................... 134
Reports ................................................................................................................................................ 134
Enquiries.............................................................................................................................................. 136

Page 4 of 151
Syndicated Loans
SL.BUY.SELL .................................................................................................................................. 140

SLL.BALANCES.SUM ..................................................................................................................... 142
Outward Delivery ................................................................................................................................. 143
Summary of messages generated ................................................................................................... 143
EB.ACTIVITY ................................................................................................................................... 144
EB.ADVICES ................................................................................................................................... 145
Parameter definitions ....................................................................................................................... 146
FACILITY ...................................................................................................................................... 148
SL.LOANS ................................................................................................................................ 149
SL.CHARGE ............................................................................................................................. 150
SL.BUY.SELL ........................................................................................................................... 150
SL.REPAYMENT.SCHEDULES ............................................................................................... 150
SL.ROLLOVER ......................................................................................................................... 151

Page 5 of 151
Syndicated Loans
Overview
A syndicated credit is usually a large facility made to a borrower or borrowers by a group of banks
headed by a lead bank that usually takes a percentage of the facility itself, syndicating the rest to other
banks and financial institutions. The credit could be fund based or non-fund based. Syndicating loans
or spreading debt among a number of investors helps lenders manage their portfolios by reducing risk,
improving returns and increasing fee business. A syndicated facility is typically structured and priced
by the lead arranger or agent, who then sells portions of the deal to other lenders or investor groups
under terms negotiated by the agent.
Syndication clearly has become more complex over the last several decades. In addition to
commercial banks and financial institutions, today's investors include finance companies, insurance
companies, securities firms etc., with commercial banks and financial institutions remaining as the
largest investor category. With diverse investor base it is often required that the facility is structured to
meet the needs of the market. Often structuring involves revolvers (short term facility) and term loans
(long term facility) with the investors being different for these two segments.
The Syndicated Lending (SL) module has been designed keeping in view the complex facility
structures prevailing in the market and the need for automated administration of such facilities with
flexibility, which is a key feature of T24.
The module automates the business of administering syndicated facilities where the bank is either the
lead manager/lead participant/agent or a mere participant. It handles basic to complex multi-lender,
multi-tranche, multi-product, multi-currency, and multi-borrower facilities from application stage to
maturity, based on workflow approach with rigorous condition checking.
The system handles the workflow in the following stages:
Pre-Syndication – This stage starts with recording terms of mandate and culminates with recording
the final terms of the credit agreement. Information that may be recorded includes the nature of facility
sought, details of banks to which information memorandum is circulated and their response, details of
underwriters with underwriting fee, participations brought in by each underwriter, details of final
allotment to participants with the commitment fee at participant level. Collection and distribution of
underwriting fee and accounting for underwriting, if required, is also handled at this stage.
Facility – This is a line of credit or a facility granted to the borrower. The administration of the facility is
broadly based on its product type, nature of credit (revolving or non-revolving), tenor and the currency
of the facility. Method of calculation of commitment fee and its collection frequency is defined in this
stage. Tranches may be defined under a facility to phase out disbursements, with each tranche having
its own set of terms and conditions for drawdown management.
Drawing – This is a drawdown against a facility. Multiple loans may be drawn down against a facility
until the facility is fully utilised. Features such as default of interest rates from facility,
rollover/merger/split of loans are also available.

Page 6 of 151
Syndicated Loans
Apart from the above, interim events that are supported by the system include rollover/merger/splitting
of loans, loan trading etc.
A typical structure supported by the module has been given below. In the pre-syndication stage details
pertaining to Facility 1 and Facility 2 may be recorded. Facility 1 may be further broken down into
tranche 001 and 002. Terms and covenants could be recorded at both facility level and tranche level.
The loan processing is linked to the tranche under which it is drawn and all terms and conditions
stipulated under the respective tranche are validated. Information would be available at facility or
tranche level for individual participant and at borrower level.
Product structure
The following are the major functionalities provided in the module:
• Ability to record and process information from the mandate date till the date of allotment (Pre-
Syndication Stage).
• Ability to record the information on participants with their share in each facility if the syndication
involves multiple facilities.
• Monitor the status of the syndicate till the entire line of credit is tied up.
• Define various roles and ability to process fee based and non-fee based charges for them.
• Ability to further breakdown the facility into tranches and record terms and conditions at facility
level and tranche level.
• Processing draw down against facility including all repayment and fees.
• Pooling of funds at a central Nostro correspondent for disbursement to borrower.
• Rerouting funds repaid by borrower to respective participants – this may either be automated or
handled after sighting the credit.
• Enable loans to be rolled over in the same or in different currency and ability to merge or split
loans.

Page 7 of 151
Syndicated Loans
• Handle purchase or sale of participations in the loan or facility.

• Delivery messages for borrower and other members of the syndicate including SWIFT.
• Ability to define repayment schedules at facility level or loan level.
• Ability to define reducing limit for a revolving facility.
• Ability to define and process activity based charges.
• Diarise events related to the syndicate and record their outcome.
• Availability of information at individual participant level for each event during the life cycle.
Setup
Functions Supported
The module supports Agent Bank, Agent cum Participant Bank and mere Participant Bank
functionality.
For Agent Bank, the information with respect to the individual participants’ share in the facility and
draw down would be held on a memorandum basis. All fund flows (draw down, collection of charges
and fees, repayment of interest and principal, rollover, merger, split etc.) would be routed through the
Agent (either the Nostro account or the borrower’s/participant’s account with the Agent) and
appropriate accounting entries would be raised. The system would maintain the amount due to/from
individual participants for each event. In addition to the above, buying and selling of participation at
facility level or draw down level may be recorded.
For Agent cum Participant, the functionality is the same as that for Agent Bank. In addition, accounting
would be done to the extent of Agent’s participation in the facility and the loan draw down. Accrual of
commitment fee, interest on draw down etc., would be done to the extent of Agent’s share. Apart from
recording any buy/sell transaction, accounting would be done if the Agent bank were involved in the
transaction.
For a mere participant, the information pertaining to the participant would only be available irrespective
of whether the participation is at the initiation of the facility or it has entered the syndicate buying a
share under an existing facility. Accounting would be done to the extent of participation in the facility
and the loan draw down. Accrual of commitment fee, interest on draw down etc., would also be done
to the extent of participation. Fund flow may also be routed through the Agent for the facility wherever
no direct credit/debit to borrower’s account is possible.
Products
The module supports the following products:
• Loan
• Standby Letter of Credit
• Guarantees

Page 8 of 151
Syndicated Loans
The processing of loan type products from Pre-Syndication stage till maturity is handled in SL itself.
Standby Letter of Credit and Guarantee type products are handled by providing a link to the MD
module. For these products, recording and processing of information is handled in SL for the pre-
syndication stage. Recording terms and conditions applicable at the facility/tranche level, commitment
fee calculation, monitoring available amount under the facility at individual participant level etc., are
handled. The actual issue of Guarantee or Standby Letter of Credit and subsequent processing alone
is handled in MD module.
Interest Application
Payment Method
Both arrears type and discounted type interest method are supported. Arrears type interest method
may be used if the interest is to be collected at the end of the interest period. Discount type may be
used if the interest is to be collected at the start of the interest period.
Interest Basis
There are several Interest Basis types supported by SL. These are:
Type Days Description

A 360/360 Each month is considered to have 30 days.
A1 Similar to A above but with special conditions - see
HELPTEXT
A2 Similar to A above but with special conditions - see
HELPTEXT
B 366/360 The exact number of days will be considered in respect of
the numerator.
C 366/366 The exact number of days will be considered in respect of
the numerator.
D 360/366 Each month is considered to have 30 days.
E 366/365 The exact number of days will be considered in respect of
the numerator.
F 360/365 Each month is considered to have 30 days
F1 Similar to F above but with special conditions - see
HELPTEXT
F2 Similar to F above but with special conditions - see
HELPTEXT
S Manual User supplied Amount

Page 9 of 151
Syndicated Loans
Interest Types
Fixed and floating interest types are supported.
In fixed interest type, the interest rate is ‘fixed’ usually for the life of the facility. SL does allow the user
to change the rate since market demands require the bank to have a flexible approach. The rate is
entered at the time of draw down. The rate applicable to the borrower and individual participants may
be recorded separately if required. Facility has also been provided to default the interest rate at the
time of draw down to minimize user input. The default mechanism is explained later in this chapter.
Any amendment to the interest rate during the life of the drawing may be done manually.
Where there is an agreement to pay or charge interest at an agreed spread under/over any published
base rate, floating interest type may used. The drawdowns under the facility are tied to the base rate
via a key and when the base rate changes the interest amounts due are re-calculated automatically.
Holding Rate
The practice in some banks is to fix the interest rate a few days before the end of the interest period.
In such cases a notional rate is used to accrue interest on the contract. In SL a holding rate may be
defined and the actual rate input manually anytime before the end of interest period. Interest amounts
due for the current period are then recalculated automatically.
Differential Rates
In some instances the interest rate as applicable to the borrower could be different from that charged
by the individual participants. In a syndicate where the participating banks quote different interest rates,
a weighted average rate may ultimately be quoted to the borrower, else the agent may skim the
difference in the rates applicable to the participants and borrower. To cater to such requirements, the
interest rate applicable to the borrower and that applicable to individual participants may be recorded
in separate tables. The system would hold information on the amount participated by individual
participants in a draw down and the interest due to each participant. The interest due to each
participant is calculated based on the interest rate applicable to the participant.
A similar requirement for commitment fee is also handled.
Application of Interest Rate

In order to minimise user input, a mechanism for defaulting the applicable interest rate/spread for a
draw down under the facility is available. A facility normally is denominated in a currency with an
option to the borrower to draw the funds in a few other currencies (optional currencies) as well. The
interest rate/spread applicable for a draw down would depend upon the currency in which the drawing
takes place. Further the interest rate/spread applicable to individual participant could also vary and the
module caters to such complex scenarios. The picture below describes the workflow for defaulting
interest rates/spread.

Page 10 of 151
Syndicated Loans
Discounted Deals
The maturity date can be amended for a discounted SL.LOAN; this requires decisions on how to
process the interest that has already been settled.
Upon amendment, the interest amount (in this case the difference between the original discounted
interest loan amount and the early closure interest amount) would need to be accommodated. Fields
RET.INT.AMT and RET.INT.DATE are updated when the interest amount is returned back to
customer.
• To amend the interest rate within the liquidation period via the SL.LOANS application.
The ability to define frequency schedules/Ad-hoc payment dates for interest in SL.LOANS application
for a discounted contract. The amount for the next schedule would be collected upfront at the end of
the first schedule and they would be cycled to the next schedule. This happens during cob processing.
The ability to amend the interim interest liquidation through SL.LOANS application.
Depending on the Bank’s policy, at parameter level (in this case SL.PARAMETER), the new field
named RETURN.INT can be set to YES so that when changes to a discounted loan contract are
made the difference of interest amount can be refunded to the borrower. This links to the SL.LOANS
record.
The value date of the interest amount returned will be the value date of the interest rate or principal
decrease done through the SL.LOAN. If there are multiple changes with different dates, then the
system date is taken as the value date as is also the case with interest returned due to introduction
of/amendment to schedules defined in SL.REPAYMENT.SCHEDULES
Special Basis Interest
Special interest calculation basis can be used in SL with following features

• Ability to input total interest amount in the contract.
• Ability to define or change Principal and Interest schedules
• Ability to input Discounted and Interest Bearing contracts
• Ability to adjust profit &loss on interest repayment schedule
• Ability to change Interest Rate & Manual Interest Amount
• Ability to change Maturity Date contracts
• Ability to return the Manual Interest Amount, if principal is reduced during the
interest period
• Ability to control the tolerance level of Manual Interest Amount and T24
computed interest amount.

Page 11 of 151
Syndicated Loans
Application of interest rate
The system default / application of interest rate for a drawing under a facility for the following
scenarios is explained below:
Drawing in Facility Currency

• Interest rate defined in the facility is defaulted by the system at the time of drawdown. This rate is
applied to the borrower. If the rate/spread applicable to all participants is the same as that of
borrower, SL.RATES.PART need not be defined. If there were no record in SL.RATES.PART,
the system would apply the borrower’s rate to all participants.
• If the rate/spread quoted by the participants is different from that charged to the borrower, the
SL.RATES.PART record must exist for the relevant participants. The structure and contents of
this file is described later in this chapter. The rate applicable to the participants is taken from
SL.RATES.PART table.
Drawing in an Optional Currency

• The borrower may be permitted to draw funds against the facility in a currency other than the
facility currency (optional currency). If the rates/spreads applicable for drawing in optional
currencies are known upfront, these rates/spreads may be recorded in the SL.FACI.RATES file.
The system in such cases would default the applicable interest rate/spread for the currency at the
time of draw down from SL.FACI.RATES file. The SL.RATES.PART record need not exist if the
same rate/spread is applicable to all participants.

Page 12 of 151
Syndicated Loans
• If the rate/spread quoted by the participants is different from that charged to the borrower, the
SL.RATES.PART record must exist for the participants. The rate/spread applicable to the
borrower is defaulted from SL.FACI.RATES and that applicable to the participants is picked up
from SL.RATES.PART file.
Commitment Fee
Four types of commitment fee calculations are supported in SL.
(a) ORIGINAL – In this case, commitment fee is calculated as a percentage of the original (initial)
amount. The fee is not dependant on drawings made or extent of utilisation.
(b) UNUSED – Commitment fee calculation is based on the un-utilised portion of the facility. Initially
the fee is calculated on the original amount and is re-calculated after every drawing (or re-
instatement if facility is revolving). In case the facility is defined with tranches, the future dated
(unavailable) tranches are also reckoned for the purpose of calculation.
(c) TRANCHE UNUSED – Commitment fee calculation is based on the unused portion of ‘available
tranches’. A facility could be defined in tranches that may be either sequential or overlapping. In
the case of TU basis, the fee is based on individual tranche validity, on the unused amount of the
tranche. In simple words, the base for calculation is the commitment available amount in all the
tranches that are current (live)
(d) COMMITMENT AVAIL/UNAVAIL - Commitment fee is based on the commitment available

amount for drawdown and also on the unavailable commitment amount. Two commitment fee
percentages need to be defined to calculate commitment fee on the available amount and on the
unavailable amount.
The following example illustrates the calculation of commitment fee for the above calculation basis:
Facility Amount 10,000,000

Value Date Jan 01, 2002
Maturity Date Jan 01, 2003
Commitment Fee Due Date July 01, 2002
Commitment Fee Pay Frequency M0601
Int.Day.Basis B (360/360)
Commitment Fee Percentage 1%
Tranche Particulars
Tranche 001
- Amount 6,000,000

Page 13 of 151
Syndicated Loans
- Start Date Jan 01, 2002

- End Date Sep 01, 2002
Tranche 002
- Amount 4,000,000
- Start Date June 01, 2002
- End Date Jan 01, 2003
The commitment fee is calculated for the current period (till the next fee due date). In the above
example, the commitment fee would be calculated till Jun 30,2002, as the due date is Jul 01, 2002.
The calculation of the commitment fee for various fee types is illustrated below:
Fee Basis – ORIGINAL (O)
Base Amount for Calculation 10,000,000

Days in the period 181
Commitment fee for the period 50,277.78
For this calculation basis, any subsequent drawing would not impact the base amount for calculation.
Therefore irrespective of the drawings, the fee for the period would be 50,277.78 for the period.
Fee Basis – UNUSED (U)

Initial calculation

After Drawing 1 for 3,000,000 on Jan 10, 2002.
Base Amount – Period (Jan 01 – Jan 10) 10,000,000

Commitment fee 2500
Base Amount – Period (Jan 10 – July 01) 7,000,000
Commitment Fee 33,444.44
Total Commitment for the fee period 35,944.44

Page 14 of 151
Syndicated Loans
The initial calculation of the commitment fee for UNUSED calculation basis is the same as ORIGINAL.
However, when a drawing is made, the base for calculation of the commitment fee is reduced to that
extent effective from the value date of drawing. When drawing matures, the commitment available
amount is restored (if the facility is revolving) and accordingly the base for calculation is also increased,
effective from the restoration date. For a non-revolving facility there would be no reinstatement and
hence the commitment fee would not be recalculated on maturity of drawing.
It may be noted that the base amount for calculation for both ORIGINAL and UNUSED basis is at the
facility level and not tranche level. In case of ORIGINAL it is the original facility amount and in the case
of UNUSED, it is the unused or available amount at the facility level.
Fee Basis – TRANCHE UNUSED (TU)

Initial Calculation
For this fee calculation basis each tranche is treated as a sub facility and the calculation is done at
tranche level. However the commitment fee is maintained at facility level as a summation of the fee
due under each tranche.
Tranche – 001
Days in the period (from Tranche start date to 181
Commitment fee due date)
Tranche – 002
Total commitment fee for the period 33,500
Subsequent drawings under each tranche reduces the base amount for calculation for the respective
tranche as illustrated below:
Drawing 1 for 3,000,000 Jan 10, 2002 against Tranche 001
Tranche – 001
Base Amount - Period (Jan 01-Jan 10) 6,000,000
Commitment fee 1500

Page 15 of 151
Syndicated Loans
Base Amount - Period (Jan 10 – July 01) 3,000,000

Commitment fee 14,333.33
Commitment fee for the tranche 15,833.33
Tranche – 002
Total commitment fee for the period 19,166.67
Though internally the system calculates the fee for each tranche on an UNUSED basis, the total fee
due from all the tranches in the facility for the commitment fee period is stored in the system.
Drawing 2 for 2,000,000 on June 10, 2002 against second Tranche 002.
Tranche – 001
Base Amount - Period (Jan 01-Jan 10) 6,000,000
Commitment fee 1500
Base Amount - Period (Jan 10 – July 01) 3,000,000
Tranche – 002
Base Amount – Period (June 01 – June 10) 4,000,000
Commitment fee 1000
Base Amount - Period (Jun 10 – July 01) 2,000,000
Total Commitment fee for the period 18,000

Page 16 of 151
Syndicated Loans
Charges & Fees

Business practice envisages collection of charges and fees linked to various events across the life of a
syndicated credit. The typical charges collected are: Participation fee, Agency fee, Legal charges,
administrative charges etc. The charges could be one-time or frequency based. The module caters for
collection of charges at various levels through a separate application, which is explained elsewhere in
this chapter. Furthermore, ability has also been provided to amortise charges over the life of a contract.
For any charge taken, the system would maintain the amounts due to individual participants, if
applicable.
Charges could be taken at the facility level, tranche level or drawing level. Such charges may be made
applicable to any one or all of the participants. The base amount on which a percentage charge is
calculated could either be the original amount or the current outstanding. All these scenarios are
covered for.
Rollover, Merger and Split

The module caters for rollover, merger (consolidation) or splitting of existing draw down/s under the
same facility and with same maturity dates. The resultant loans may be in different currency, for a
different tenor and with different interest rate/spread.
Rollover
Rollover
A drawing may be rolled over for a further period before its maturity. The module supports several
features pertaining to rollover. These include rollover for a reduced amount, rollover in the same
currency as an existing drawing or in any other allowed currency, principal increase, checking of
exchange variance (in case rollover is from one optional currency into the same optional currency),
new tenor and rate for the loan rolled over. A simple rollover is carried out with minimum input. The
system calculates the new loan amount and the participants’ share in the new loan. The new loan is
automatically created by the system.

Page 17 of 151
Syndicated Loans
Merger
Merger
The system permits merging (consolidation) of loans in one or more currencies but with the same
maturity date. Option is available to effect a principal decrease on the existing loans and consider only
the balance for merger. Merger may also result in more than one drawing; for example five loans could
be merged into two The consolidated loan(s) could be in any of the allowed currency and could have a
different tenor and rate.

Page 18 of 151
Syndicated Loans
Split
Split
It is also possible to split an existing drawing into more drawings in different currencies, for different
tenor and with different interest rate/spread.
When existing drawing/s are rolled over, merged or split, the outstanding under the old loans are
repaid and disbursements for the new loan/s are made. However for a single currency, the fund flow
takes place either from or to the borrower only. Accordingly, currency wise pay or receive information
and individual participants’ share in pay or receive is held for each transaction.
Exchange Variance
When a loan is drawn down under a facility in an optional currency (a currency other than the facility
currency), an exchange rate is used to update the amount utilised in facility currency equivalent. When
the loan reaches its maturity and is rolled over in the same optional currency, the exchange rate
prevailing at the time of rollover is used to determine the amount of new drawing (facility currency
equivalent of the original drawing). It is normal practice to stipulate a permissible percentage variation
over the original amount and new amount. When variance is less than stipulated the percentage,
rollover is done for the original amount. If variance is more than stipulated percentage, there is an
increase (disbursement) or decrease (repayment) to the original drawing. The exchange variance
applicable for the optional currencies may be recorded at tranche level. The system would
automatically take the stipulated variance into account in order to arrive at the new drawing amount
while inputting a rollover transaction.

Page 19 of 151
Syndicated Loans
SL.BUY.SELL - Buying and Selling operations

During the lifetime of a syndicated loan it is common practice for members of the syndicate to sell
either part or all of their participation. This could lead to a new entrant as participant into the syndicate.
The module caters for the following:
• Buying and selling of contingent portion including the consideration for buying or selling.
• Buying and selling of non contingent portion including the consideration.
• Full or partial buy / sell.
• Entry of new participant in the syndicate or exit of a participant.
• Automatic update of the revised share of the participants in the facility or loan.
• For a mere participant functionality, entry into the syndicate by a buy transaction.
• Settlement of consideration and non contingent amount bought or sold (only in case of the T24
bank).
• Option to amortise the discount/premium.
SL will allow the settlement of the interest amount during the loan trading itself. The interim interest
settlement amount will be stored in the balances record and will be consider during the original
schedule processing. For T24 bank, interim interest settlement amount will be booked under the
separate internal account defined in the parameter record and will be nullified during the original
schedule process.
The user can define the frequency for amortisation of premium / discounted amount in the loan trading.
It can be monthly or daily. The bank can realise the amortisation amount with respect to the principal
outstanding of the traded loan.
The same application (SL.BUY.SELL) could also be used to record details of principal increase and
decrease to the facility. Principal increase could result in an increased value in existing tranche(s) or in
creation of a new tranche. Similarly a decrease in facility amount may result in reduction of tranche
amounts or cancellation of an existing tranche.
While handling principal increase, it would be possible for the user to define the contribution to such
increase by existing / new participant(s).
An option to allow input of new loans even after the expiry of DRAW.MAT.DATE in FACILITY is
possible. This is possible by introducing a new Tranche in the Facility record through SL.BUY.SELL
as a Principal Movement
The field NEW.DD.END.DATE on SL.BUY.SELL will be opened only after the expiry of the
DRAW.MAT.DATE in FACILITY and only for Principal Movement. The user will be able to enter a
forward value date or today’s date. This date will be defaulted as DRAW.MAT.DATE,
TRANCHE.END.DATE and CMT.FEE.DUE.DATE in the FACILITY file.
Reducing Limit & Repayment Schedules

It is possible to define phased reduction in the facility amount for a revolving facility. The system would
check if drawings under the facility are within the projected exposure amounts for every time block.

Page 20 of 151
Syndicated Loans
Such a check is performed at the time of each drawing.
Repayment schedules may be defined for non-revolving facilities. In case drawings exist in various
currencies and the bank intends to control the exposure at facility level, the repayment schedule may
be defined at facility level. Alternatively, the repayment schedule may be defined at individual drawing
level. If facility level repayment schedule were defined, when the drawing is rolled over the system
would check if the outstanding drawings under the facility (expressed in facility currency) were within
the agreed exposure level and force a repayment if required.
Architecture/Design
Parameter Files & System Tables
SL.PARAMETER
This table holds the accrual cycle together with the P/L accounts that will be used for various events.
The table also contains the ID of the T24 bank (user of SL module). This is key information as
accounting is done only for the T24 bank. To start with it is therefore necessary to set up a record in a
Customer table for the T24 bank.

Page 21 of 151
Syndicated Loans
SL.PARAMETER
The accrual cycle may be daily or in multiples of months. The PL category for interest accrual, interest
amortisation (in case of discounted loans), and commitment fee accrual, underwriting fee, profit or loss
on buy/sell transaction are determined from this table. If the bank requires that its underwriting in the
syndicate be accounted for, ACCT.UNDERWRITING should be flagged YES.
When T24 bank is also acting as an agent, the interest/commitment amount due from the borrower
and individual participants’ share in that amount is held in the system. The system calculates the
amount of interest/fee (at borrower level) and independently calculates each participant’s share. This
often could lead to rounding differences. There could also be a situation wherein the agent banks
quotes a rate to client that is not the same that the participants’ had quoted resulting in skimming profit.
Any difference on the amount due from the borrower and that to be distributed to the other participants
is parked in an internal account. The internal account category to be used for this purpose is indicated
in the field SKIM.ACCT.CAT. A record must exist in ACCOUNT.CLASS for this category with

Page 22 of 151
Syndicated Loans
RECORD.TYPE as ACCOUNT. The bank may ultimately decide whether the difference is to its own
account or to be distributed to the participants.
It is also possible that the amounts calculated by the system for individual participant does not actually
tally with that advised by the borrower. This may happen if standard rounding off rules are not decided
upon upfront. In such cases adjustments to the system calculated amount (rounding off) is required.
The module provides for rounding off the amount due to the individual participants. However in order
to avoid input errors at the time of rounding, the maximum permissible variance may be defined in the
field MAX.ROUND.
SL.ROLES
SL.ROLES
The different roles in syndication are listed out in this table and are user-definable. The ID would be a
numeric value up to 99, i.e. 99 different roles may be defined. SL.ROLES are defined in this table and
assigned to each party involved in the syndication process. Typical values (roles) that may be defined
are Agent, Agent cum Participant, Participant, Manager, Lead Manager, Underwriter, and Guarantee
Custodian etc.
The table would contain only two fields 'DESCRIPTION' and 'SHORT.DESCRIPTION' (apart from
the @ID) where the role is defined. SHORT.DESCRIPTION is the description in an abbreviated format
that is used for enrichment.

Page 23 of 151
Syndicated Loans
SL.FACILITY
SL.FACILITY
Different types of credit facilities offered by the bank are listed in this table. The @ID would be a
numeric value up to 99. The table is user definable based on individual requirement. In the description
field the type of loan facility is entered.
Typical values for such table would be TL (Term Loans), PF (Project Finance), GT (Guarantees) etc.
The table would contain only two fields 'DESCRIPTION' and 'SHORT.DESCRIPTION' (apart from
the @ID) where the role is defined. SHORT.DESCRIPTION is the description in an abbreviated
format that is used for enrichment.
SL.PURPOSE
Purpose for which disbursements are made is listed in this table. The @ID is numeric and the bank
may define up to 99 different purposes based on its requirement.
SL.PURPOSE

Page 24 of 151
Syndicated Loans
SL.STATUS
Overall status of the syndication is indicated by values in this table. The @ID would be numeric and 99
different statuses may be listed.
SL.STATUS
SL.CHARGE.ACTIVITY
Charges are collected for various events. For example when a facility is granted, front-end fees may
be collected along with documentation charges etc. It is possible to group the charges defined in
FT.COMMISSION.TYPE or FT.CHARGE.TYPE and collect them for a particular event. The bank must
first define all the charges and commissions applicable to SL in FT.COMMISSION.TYPE or
FT.CHARGE.TYPE table. These charges may then be grouped in SL.CHARGE.ACTIVITY for
default when the charges are taken through the SL.CHARGES table.
The ID of this table is a three character alpha numeric where charges applicable for specific events
may be grouped. ID 999 is reserved for taking adhoc charges (charges not related to any activity) and
hence would not accept any FT.COMMISSION.TYPE or FT.CHARGE.TYPE record. Ability is also
provided to define a charge frequency that is to be defaulted to the charge table. A User may also
decide whether to amortise the charge or not and if to be amortised, the period and frequency of
amortisation may also be defined upfront for default purposes.
Apart from this, it is possible to define whether the charges are to be shared among all participants or
applicable only to an Agent.

Page 25 of 151
Syndicated Loans
SL.CHARGE.ACTIVITY – Grouping of charges
While taking charges through SL.CHARGE, the ID of SL.CHARGE.ACTIVITY only needs to be

input and the system would default all the applicable charges. In the above example Front End fees,
Documentation charges and Agency fess have been defaulted. Flexibility has been provided to
accommodate charges to be taken at a particular frequency. The frequency at which the charge is to
be applied is indicated in CHARGE.FREQ field. In the above example Agency fees would be collected
once every year. It is also possible to amortise the charge, and the period over which the charge
needs to be amortised may be indicated. The amortisation would happen on a monthly basis.
From an agent bank perspective, some of the charges collected from the borrower will have to be
distributed to the participants in the ratio of the individual participant’s share in the syndicate. Some
charges like agency fees would not be distributed as it is meant for administration of the facility. If
charges are to be distributed to other participants, then the APPLY.TO.ALL field should be flagged
YES, else the field may be flagged NO.
It would also be possible to define the base for the calculation of charge if the charge were to be of a
percentage type. For example, if the charge were to be collected on a facility, the base amount could
either be the original facility amount or the current outstanding. It would also be possible for the user to
define the base amount manually if the charge were to be adhoc.

Page 26 of 151
Syndicated Loans
Collection of Multiple Fees in SL
SL.PARAMETER
PL.COMM.CAT.UNAVL Must be a valid category. This is used to calculate the fee for the original
commitment amount for T24 Bank. (Accrual will be posted during COB).
If this field has no input, an error message will be given by the system when the field CMT.FEE.UNAVL
is inputted in FACILITY.
FACILITY
SL.AMOUNT
Multi-value field when Band or Level is inputted in the field FEE.BAND.LEVEL. Different slabs can
be inputted. Input must be in ascending order.
Last Multi-value should contain the total syndication amount (as populated from
PRE.SYNDICATION.FILE on authorisation)

Page 27 of 151
Syndicated Loans
FEE.CALC.BASIS
Basis OU will enable the user to input the fee for original and unavailed amounts of the FACILITY.
The fee for Original amount is taken from the field CMT.FEE.UNAVL.
Fee for the Unavailed amount is based on the values in the fields SL.AMOUNT, CMT.FEE.PERC and
FEE.BAND.LEVEL. Calculation for Band or Level is the standard T24 Functionality.
Values must be given in ascending order. Multi-value can be done only when BAND or LEVEL is
inputted in the field FEE.BAND.LEVEL
The last Multi-value should be the same as the value inputted in PRE.SYNDICATION.FILE
Once authorised, the values cannot be changed as this is a no change field.
CMT.FEE.PERC
Multi-value field when FEE.BAND.LEVEL is inputted with BAND or LEVEL and SL.AMOUNT field is
multi-valued.
The number of multi-values must be equal to the multi-value fields in SL.AMOUNT
Change of fee can be done through the fields NEW.CMT.FEE.1 and NEW.CMT.EFF.DATE
FACILITY
PART.CMT.MARGIN:
This field is used to given margin (can be plus or minus). The net value arrived at by adding the
values in field CMT.FEE.PERC and PART.CMT.MARGIN will be used for fee calculation for
Participant unused facility amount. Either PART.CMT.FEE or PART.CMT.MARGIN can be inputted
and not both. If the net value arrived is Zero or negative, fee will be calculated as 0.00.
Margin can be positive or negative
Either PART.CMT.FEE or PART.CMT.MARGIN alone can be inputted and not both.
SL.FACI.RATES
Drawings under a facility would be permitted in any allowed currency. The rate applicable to drawing

Page 28 of 151
Syndicated Loans
in facility currency is captured alone in the facility template. If the rate applicable for drawing in an
optional currency is determined upfront, such a rate may be input in this table. If a drawing were made
in the optional currency, the system would default the applicable rate.
SL.FACI.RATES
The @ID of the record is the facility ID suffixed with the currency. In the above example, for any GBP
drawing under this particular facility, interest key (1) and spread (2.5%) would get defaulted. The
interest rate type (fixed or floating) is also stored in this template. For a floating interest type facility,
fixed rate would not be allowed to be input and vice versa. Similar records may be created for as many
optional currencies. It may be noted that this is a default mechanism and the user would be allowed to
modify the rate while inputting the drawing. A suitable override message would be generated when a
defaulted rate is modified.
SL.RATES.PART
If the rate quoted by individual participants’ is the same and the same rate is charged to the borrower,
then no record need exist in SL.RATES.PART. This table has been provided exclusively to cater for
situations where differential rates exist.
SL.RATES.PART – Single participant rate

Page 29 of 151
Syndicated Loans
The @ID of the record is facility ID suffixed with Currency and Customer ID (of Participant). In the
above example a spread of 2.5% applicable to AFRIBANK would be applied for any drawing in GBP.
For the other participants, if no record exists in this table the spread input in the drawing would be
applied.
In large syndications the number of participants could be many. In some situations the rate quoted by
only a few of them may be different and for the rest, the same rate may be applicable. In such
situations a weighted average rate may be quoted to the borrower that is input at the time of drawing.
For the rate applicable to the individual, a participant’s record must exist in this table. However to
minimise the input, one record may be created with a suffix of ‘ALL’ indicating that the rate is
applicable to all participants. To exclude only the few participants for whom a different rate is
applicable, records may be created for these participants alone.
SL.RATES.PART – Rate for all participants
If the above record were to exist, then for any drawing in GBP a spread of 2% would be applied to all
participants. If the above record and that for AFRIBANK were to exist, a spread of 2% would be
applied to all participants except AFRIBANK. A spread of 2.5% would be applied to AFRIBANK. The
spread applied to the borrower would always be picked up from the drawing template (SL.LOANS).
Deal/Transaction Processing
Non Stop processing
New PRE.SYNDICATION, FACILITY, SL.LOANS, SL.BUY.SELL,

SL.REPAYMENT.SCHEDULES, SL.CHARGE or SL.ROLLOVER contracts can be input during
COB with value date not less than system date. No amendment of contracts input prior to COB would
be allowed.
SL Workflow

Page 30 of 151
Syndicated Loans
Pre-syndication stage
The workflow in SL starts with the Pre-Syndication stage. The pre-syndication stage commences from
the time the bank receives a mandate from the borrower. Once all the pre mandate requirements
have been addressed the actual process of setting the groundwork for placement of loan in the market
(syndication) commences. Once an information memorandum on the proposal is prepared the same is
forwarded to the participating banks. In some cases it may be required that the facility is fully
underwritten upfront. The agent bank may underwrite the whole of the facility or a few more banks
may participate in the underwriting process. The subscription brought in by each of the underwriters is
recorded to arrive at the shortfall in case of devolvement. Once the facility is fully subscribed the
allocation of participation is done. The entire workflow pertaining to the pre-syndication is handled in
the PRE.SYNDICATION.FILE.
As explained earlier the module caters for Agent, Agent cum Participant and Participant only
functionalities. The role of T24 bank in the facility is also indicated in this template.
Types of SL.FUNCTION
As can be seen from the above, the field SL.FUNCTION would accept values of A, AP or P. Value A
denotes agent only role, AP denotes Agent Cum Participant role and P denotes Participant only role.
For agent or agent cum participant role, details of all underwriters may be recorded and the system
would process the underwriting fee due to individual underwriters on creation of the Facility file. The
participations brought in by each underwriter and the participations allotted may also be recorded.
However for an agent only role, the agent cannot be a participant. Similarly, for a mere Participant role,
details of the amount underwritten by that participant in the syndicate, its participation in the facility
and amount of syndication (amount of facility sought by the borrower) may only be recorded.
Mandates for multi purpose and multi currency facilities may also be recorded in this file. The @ID of
the file is Product.ID/Julian date/5 Digit Sequence number.

Page 31 of 151
Syndicated Loans
As mentioned earlier the pre-syndication process may be recorded progressively.
Receipt of Mandate
PRE.SYNDICATION.FILE – Mandate details

Page 32 of 151
Syndicated Loans
PRE.SYNDICATION.FILE – Credit details
The above input pertains to a multi purpose, multi currency facility mandate received. The mandate
received is for a Project loan of USD 100 million and Working capital facility of GBP 50 million. Initially
when the mandate is received minimum level of information is required. In case the facility is for a
group of borrowers, the ID of the liability customer of the group may be entered here. The role of T24
bank is input in the SL.FUNCTION field. The product category entered in the Category field will be
defaulted in the FACILITY file. The SL module would accept any category in the range 20000 to
49999. Fields MANDATE.DATE, PRESYN.START.DATE and PRESYN.END.DATE indicate the date
of receipt of mandate, the start date for pre-syndication and the agreed end date for pre-syndication
respectively. The officer in charge of the pre-syndication process is recorded in ACCOUNT.OFFICER.

Page 33 of 151
Syndicated Loans
The terms agreed with the borrower for each facility then needs to be input. This is done by multi-
valuing SL.CURRENCY. A facility is uniquely identified by the currency in which it is sought and the
nature of facility viz. REVOLVING or NON-REVOLVING. The currency of the facility may be input in
SL.CURRENCY and the nature of facility in REVOL.TYPE. In the above example the mandate is for
two facilities wherein USD facility is of NON-REVOLVING type and GBP facility is of REVOLVING type.
The status of pre-syndication for each facility may be input in SL.STATUS. As the syndication
progresses, the status may be manually updated by the user. INTEREST.RATE.TYPE denotes fixed
or floating type interest. If the interest type were fixed the rate of interest may be entered in
INTEREST.RATE. If the interest rate type is floating, the base rate key (ID of BASIC.INTEREST
table) may be entered in INTEREST.KEY and the spread applicable may be entered in
CUSTOMER.SPREAD field. The interest rate input here is the rate applicable for any drawings under
the facility. The commitment fee applicable for the facility may be input in CUSTOMER.FEE.
Underwriting particulars
Once the underwriters to the facility have been finalised, the details of underwriting for each facility
may be recorded.
PRE.SYNDICATION.FILE – Underwriting particulars for Facility I

Page 34 of 151
Syndicated Loans
PRE.SYNDICATION.FILE – Underwriting particulars for Facility II
In the above example, three banks have underwritten USD facility of 100 million and one bank has
underwritten the GBP facility of 50 million. Customer records must exist for each underwriter. The
fields UNDERWRITER to SUBS.BROUGHT are associated sub value fields to support multiple
underwriters for a facility.
Underwriting fees may be liquidated from the borrower’s account or from an internal account. The
liquidation account may be input in UW.FEE.ACC. The customer ID of the underwriter, the date on
which the underwriting agreement has been signed, the amount underwritten and the underwriting
commission applicable may be initially recorded. The system would calculate the underwriting fee due
to each underwriter. The percentage of facility amount underwritten is also held in the system. After
the participations are allotted and facility files created, the underwriting fee would be liquidated and
distributed to the underwriters. If underwriting by T24 bank is to be accounted for, then a contingent
entry is raised. The details of accounting for underwriting and underwriting fee are covered under the
Accounting section.

Page 35 of 151
Syndicated Loans
Recording Subscriptions
The subscription brought in by each underwriter and the amount sought by each bank is also recorded.
This information is also entered on a progressive basis as and when the subscriptions are received.
PRE.SYNDICATION.FILE – Recording subscriptions (1)

Page 36 of 151
Syndicated Loans
PRE.SYNDICATION.FILE – Recording subscriptions (2)
The issue may at times get oversubscribed. As and when subscriptions against each underwriter are
recorded the participant ID (valid record in CUSTOMER table) and the amount sought by the
participant also should be recorded. The sum of amount sought by the participants may be in excess
of the facility amount in case of over subscription. In the above example, the aggregate subscription
brought by the underwriters is USD 110 million as against the USD 100 million underwritten. The
corresponding information on the bank agreeing to participate and the extent of participation agreed

Page 37 of 151
Syndicated Loans
may be entered in PARTICIPATOR and AMT.SOUGHT. The system would calculate and update the
amount sought as a percentage of total facility. Fields 34.1 to 40.1 (PARTICIPATOR to PART.FEE)
are associated sub-value fields to input multiple participants in the facility. At this stage information on
the final allotment need not be entered.
During the process of receiving subscriptions from various banks, it is also possible to record
information with respect to the banks to which the information memorandum has been circulated,
expected response date, actual response date and response details.
PRE.SYNDICATION.FILE – Recording responses from banks
Fields (REQ.BANK) to (COMMENTS) are associated sub value fields. These fields may be used for
the purpose of recording the response from banks with which negotiations are underway for
syndication. The bank name may be entered in REQ.BANK, and DATE.SENT signifies the date on
which the information memorandum was sent to the bank. Fields RESP.BY.DT and RESPONSE.DT
signify the date by which response is expected from the bank and the actual date of response
respectively. The actual response from the bank or any other information may be recorded in
COMMENTS. This is a free text field.
Final allotment to participants
After the participations are received from the banks there could be two situations as the facility could
have been oversubscribed or under subscribed.
If the issue is oversubscribed the amount sought by various banks may have to be scaled down. The
Agent does this in consultation with the borrower. In this process, the amounts sought by the
prospective participants are scaled down or one or more prospects are not allotted any share.
Alternatively, the agent could in consultation with the borrower enhance the mandate amount. Such
enhancement to the mandate amount may have to be accepted by all prospective participants.
In case the facility is under subscribed, the underwriters will have to take up the shortfall. The module
does not handle automatic scaling down or devolvement. Details of devolvement may be manually

Page 38 of 151
Syndicated Loans
recorded in the relevant set of fields and resulting participations should also be logged.
PRE.SYNDICATION.FILE – Allotment to participants
Once the allotment is finalised and the loan agreement is entered, the details are entered in
PART.AGR.DATE and AMT.ALLOT fields. The system would calculate the percentage share of the
facility sought and allotted for each participant.
In the PRE.SYNDICATION.FILE, it is also possible to record the roles played by various banks in
the syndicate.

Page 39 of 151
Syndicated Loans
PRE.SYNDICATION.FILE – Assigning of roles
The ID of the SL.ROLES table may be input in ROLE and an associated bank ID may be input in
ROLE.CUST. This is a sub value field to accommodate input of multiple banks for the same role as
may be observed from the above screenshot.
Creation of Facility
Once the syndication is completed and the facilities are fully participated, facility files may be created.

Page 40 of 151
Syndicated Loans
PRE.SYNDICATION.FILE – Creation of facility
Once CREATE.FACILITY is flagged YES, FACILITY files are created by the system in hold (IHLD)
status. This field may be flagged YES only after the participation is fully allotted. In case of multiple
facilities (as in the above example) each of the facilities should be fully participated before creating
facility files.
Grant of Facility
Once pre-syndication activity is complete and CREATE.FACILITY in PRE.SYNDICATION.FILE is

flagged YES, facility files are created for as many facilities in the PRE.SYNDICATION.FILE.
The @ID of the FACILITY file is the ID of the PRE.SYNDICATION.FILE suffixed with a system
generated sequence number. If there were two facilities in the PRE.SYNDICATION.FILE, then the
ID of FACILITY records would contain a suffix of 01 and 02. It may be noted that the user is not
allowed to create a FACILITY record directly. A PRE.SYNDICATION.FILE must exist for any
facility file in the system and the FACILITY record is always created by the system only.
FACILITY – List of records created from PRESYN

Page 41 of 151
Syndicated Loans
It may be seen from the above screenshot that two facility records have been created by the system
after the CREATE.FACILITY was flagged to YES. The ID for the facility records are pre-syndication
ID suffixed with sequence numbers 01 and 02.
The FACILITY records are created by the system with defaulted values from the
PRE.SYNDICATION.FILE.
FACILITY – Values defaulted from PRE.SYNDICATION.FILE

Page 42 of 151
Syndicated Loans
FACILITY – Values defaulted from PRE.SYNDICATION.FILE
The important system defaults are liability customer, the currency of facility, participants to the facility
with respective share in the facility, applicable interest rate type and rate of interest or spread and the
nature of facility (REVOLVING or NON-REVOLVING). Except for interest rate details, none of the
above system defaulted values may be modified.
Once the FACILITY record is created, the other terms and conditions applicable to the facility may be
input. The terms may be classified at two levels, i.e. at the facility level and at the tranche level.
Tranches may be defined to facilitate phasing out disbursements. Multiple tranches may be defined for
a Non-Revolving facility.
The screenshot below indicates the input of terms applicable for the facility.

Page 43 of 151
Syndicated Loans
FACILITY – Terms of credit
MATURITY.DATE indicates the latest permitted date of maturity of the all the drawings under the
facility and the DRAW.MAT.DATE indicates the final date for drawing under the facility. The period
from VALUE.DATE to DRAW.MAT.DATE is generally referred to as the drawdown period.
INT.DAY.BASIS is the interest basis used for calculating commitment fee. The interest details
indicated in this file are applicable for any drawing in the facility currency. The defaults at the drawing
level and application of interest for each participant would follow the sequence explained earlier. If
drawings under the facility are permitted to be rolled-over, the ROLLOVER.Y.N may be flagged
appropriately.
If the interest on drawings is paid at a standard frequency, the frequency of such payment may be
defined in INT.DUE.DATE. This is a date and frequency field. The frequency indicated here would get
defaulted at the drawing level. Similarly, the commitment fee payment frequency may be entered in
CMT.FEE.DUE.DATE.

Page 44 of 151
Syndicated Loans
Carry Forward Facility
Where tranches have been defined under the facility on the tranche end date, the entire tranche
amount may not have been utilised. It is possible to carry forward the unused balance to the next
tranche, provided the tranches are not overlapping. If carry forward is contemplated then
TRANCHE.C.FWD may be flagged C (Cumulative). Else the field may be flagged NC (Non-
Cumulative). For example consider a facility having two tranches. Tranche 001 is for USD 50 million
from Jan 01, 2002 to Sep 30, 2002. Tranche 002 is for USD 40 million from October 01, 2002 to Dec
31, 2002. As on Sep 30, 2002, the available amount under tranche 001 is USD 10 million (after
drawings aggregating USD 40 million).
Under the above scenario two options are possible. Either the undrawn balance USD 10 million may
be carried forward to tranche 002 thus making the amount available under this tranche as USD 50
million. Else the unavailed portion of USD 10 million may lapse. If the Cumulative option were chosen
the available amount under tranche 002 would be increased to USD 50 million. If non-cumulative
option is chosen the amount will lapse and accounting entries for reversal of contingent amount would
be raised.
Commitment Availability/Suspension
It would be possible to suspend fresh drawings under the facility due to non-fulfilment of covenants or
any other reason. Suspension of credit may be achieved by appropriately flagging AVBL.MARKER in
the FACILITY record. During the period of suspension fresh drawings or principal increase on
account of rollovers are prohibited. Rollover, Merger and Split of loans could however be transacted
for existing amounts drawn.
Functionality is provided to charge commitment fee or waive it during the period of suspension.
Taxes
The module supports Withholding tax and normal tax on commitment fee. The tax rates are defined in
the TAX application. The keys to be used should be defined in INT.TAX.KEY or WHT.TAX.KEY. The
commitment fee defined is always treated as exclusive of tax (whether normal tax or withholding tax).
The tax amount to be paid by the client is held in TAX.AMOUNT. In case a tax key is entered in
INT.TAX.KEY, there would be an inflow of funds from the borrower for the tax amount, as the bank
would be paying the tax.
In case of withholding tax there would be no inflow of funds. Instead the borrower would give a
certificate for having paid the withholding tax. However till such time as the certificate is received the
bank would desire to record its liability to pay the tax and therefore on the liquidation date, the tax
amount is placed in an internal account. Such account is input in WHT.RESERVE.ACCT.
Correspondingly another internal account for indicating the tax to be paid by the borrower should also
be indicated. This is defined in WHT.CERT.ACCT. The system does not track the receipt of certificate
from the borrower. When withholding tax certificate is actually received from the borrower the entries
to the internal account may be reversed out using Data Capture application. The accounting for tax is
explained under the ‘Accounting’ section.

Page 45 of 151
Syndicated Loans
Products
As explained earlier, the module supports Loan, Guarantees and Standby Letter of Credit type of
products. The product type is indicated in PRODUCT.TYPE.
FACILITY – Types of products
If this field has a null value, the facility is a loan type product and the entire processing would be done
in the SL module. If the field has a value of GT (Guarantee) or SC (Standby Letter of Credit), then
drawdown (issuing guarantee) under the facility should be done from the MD.DEAL module. Though
the guarantee contract would be processed through the MD.DEAL module, the facility level processing
would be done in the SL module only.
Tranches
Tranches may be defined if disbursements are to be phased out within the drawdown period. Each
tranche may also have its own set of terms and conditions. Further, the tranches may be overlapping
or sequential. The screenshot below indicates the definition of two tranches for the example provided
earlier.
Details of TRANCHE – 1

Page 46 of 151
Syndicated Loans
FACILITY – Tranche 1 particulars
FACILITY - Participation details of TRANCHE – 1

Page 47 of 151
Syndicated Loans
Details of TRANCHE – 2
FACILITY – Tranche 2 particulars

Page 48 of 151
Syndicated Loans
Participation details of TRANCHE –2
FACILITY - Participation details of TRANCHE – 2
TRANCHE.CODE is a three-digit sequence number. The fields from TRANCHE.CODE to

TR.PART.PERC are an associated multi-value set, enabling definition of multiple tranches. If multiple
tranches are defined, TRANCHE CODE has to be unique for each tranche. If multiple facilities are
created from the same PRE.SYNDICATION.FILE, the TRANCHE.CODE must be unique across
these FACILITY records. If only one tranche is required then the system would create a tranche code
by default.
The amount available under the tranche may be defined in TRANCHE.AMT and the availability period
is determined by the value in the fields TRANCHE.ST.DATE and TRANCHE.END.DATE. The available
amount under the tranche (net of any drawings under the tranche) is maintained by the system. Apart
from holding this amount in the balances files, this information is also held at two levels in the
FACILITY file. The available amount under the facility, which is the sum of available amounts under
tranches, is held in COMMT.AVAILABLE. The available amount under each tranche is held in
COMMT.AV.AMT field.
Further tranche level terms and conditions may also be defined.
Currencies, Holding Rate & Exchange Variance
The currencies in which drawing under the facility is permitted may be stipulated. Flexibility is provided

Page 49 of 151
Syndicated Loans
to define either one or more allowed currencies under the facility or to define one or more restricted
currencies. If allowed currencies are defined, drawings under the tranche would be permitted in one of
these currencies only. If restricted currency(s) were defined drawing would be permitted in any
currency other than the restricted currency(s). If neither allowed currency nor the restricted currency is
input, drawing would be permitted in the facility currency only. It may be noted that if allowed currency
(other than facility currency) is input then the facility currency should also be input as one of the
allowed currency.
The other terms associated with the allowed currency could be the exchange variance and the holding
rate, if any. Fields ALLOWED.CCY to HOLDING.RATE is hence associated to record these particulars.
RESTRICTED.CURRENCY also may be sub-valued to record more than one restricted currency.
Exchange variance is used when a drawdown in one of the optional currency is rolled over in the
same optional currency. An optional currency is any allowed currency apart from the facility currency.
The exchange variance stipulated in the FACILITY record gets defaulted in SL.ROLLOVER
application. The use of this field is explained later in this chapter when rollover, merger and split are
discussed.
Group Lending
The module supports group lending wherein a facility may be granted to a conglomerate. The liability
customer of the facility should be the borrower of the facility. The allowed and reserved amounts for
each borrower in the group may be defined and the system would always maintain a check so that
drawings under the tranche by each borrower does not exceed the maximum allowed amount and that
each borrower’s reserved amount is protected.
The fields ALLOWED.CUST to RESERVED.AMT may be used for the above purpose. These are
associated sub-value fields to record particulars relating to multiple borrowers under the group. The
definition and processing by the system is explained below:
Example: A facility for USD 100 million has been granted to Dell group of companies that has three
companies say Dell-1, Dell-2 and Dell-3. The liability customer of the group is Dell-1. If the reserved
amounts for Dell-1, Dell-2 and Dell-3 are USD 30 million, USD 20 million and USD 10 million
respectively, the following information may be input.
Allowed Customer Allowed Amount Reserved Amount

Customer ID of Dell-1 70,000,000 30,000,000
The allowed amount for any of the borrowers may not exceed the sum of reserved amount for that
borrower plus the free float. Free float is the amount of facility/tranche less the sum of reserved

Page 50 of 151
Syndicated Loans
amounts. In the above example the sum of reserved amounts is USD 60 million and the facility
amount is USD 100 million. The free float is therefore USD 40 million.
Subsequently, when any drawing takes place under the FACILITY, the system would maintain the
balance available for each borrower and how it would impact the further drawings for the other
borrower. For example:
If Dell-1 approaches to draw the entire allowed amount of USD 70 million, this would be permitted, as
the available amount under the facility after the drawing would be USD 30 million, which is enough to
meet the reserved amounts of other borrowers. If Dell-2 now approaches to draw USD 30 million,
which is within its allowed amount of USD 60 million, the same would not be permitted. This is
because after this drawing there would not be any available amount under the facility while Dell-3 has
a reserved amount of USD 10 million.
The allowed customer, allowed amount and reserved amount may be defined for each tranche under
the facility. If these fields were left null then only the facility customer would be permitted to draw funds.
Loan Trading
In some instances buying and selling of facility or the drawing under the facility would be permitted.
The fields ALLOW.CONT.SALE and ALLOW.NC.SALE may be flagged YES in such cases. If the
fields were flagged NO, buying and selling of facility or drawdown under the facility would not be
allowed. Details of buy/sell could be recorded in the application SL.BUY.SELL, explained elsewhere.
Drawdown management
For ease of monitoring a facility, it is a general practice to stipulate the maximum number of drawings
that may be outstanding under the facility. Conditions pertaining to the maximum number of currencies
in which the drawings may be outstanding may also be stipulated. The field TR.MAX.LOANS would
hold the maximum drawings that may be outstanding under the tranche. TR.MAX.CURRENCY would
hold the maximum number of currencies in which drawings under the tranche may be outstanding.
The information pertaining to above is maintained in the SL.TR.LOANS application, which is an
internal file. The system would perform a validation for the above stipulations at the time of drawing.
It is possible to define the multiples in which drawings may be made. The multiple may be input in
DD.MULT.AMT. Drawings would not be permitted if the facility currency equivalent of the drawing
were not a multiple of the amount input in this field. Similarly for administrative convenience conditions
are stipulated for the minimum amount of drawing and the maximum amount of drawing. The field
DD.MIN.AMOUNT and DD.MAX.AMOUNT would hold the minimum and maximum amounts
respectively. When any drawing is input the facility currency equivalent of the drawing is validated as
against the values in these fields.

Page 51 of 151
Syndicated Loans
Participant Share
The share of the participants is held at two levels. The share of individual participants’ at facility level
is defaulted from the PRE.SYNDICATION.FILE and is not maintainable in the FACILITY file. When
multiple tranches are defined, the system defaults the individual participants’ share in each tranche.
The default is based on the percentage share in the facility. However in some situations, participation
profile could vary across tranches. The user may, if required, modify the system defaulted participants’
shares. The system would check if the sum of individual participants’ share across tranches is equal to
the share of the participant in the FACILITY.
Overlapping Tranches
It is possible to define overlapping tranches under a FACILITY. However, in case tranches are
overlapping, carry forward of undrawn balance in a tranche would not be permitted. The system would
maintain tranche-wise information on the available amount, outstanding drawings and the participants’
share (both original and available).
Reducing Limit
It is a practice to define up front, reduction in the facility amount for a revolving facility. For example in
a revolving facility granted for a period of three years, one of terms of sanction could be reduction in
the facility amount by 30% at the end of first year, further reduction by 30% at the end of second year
and balance reduction of 40% by maturity. It is possible to define such reducing limits in the facility file
for a revolving facility only.
The reduction may be defined as percentage or amount. Based on this definition the system would
build up a file called SL.EXPOSURE.LEVEL with the available amount for various time buckets.
When any drawing is input against such facility the system would ensure that the transaction does not
breach the exposure level for that tenor. Further on from these dates there would be an automatic
reduction of facility available amount to the extent of reduction specified. Accounting entries
(contingent entry) for reduction would be raised and the commitment fee would be recalculated.

Page 52 of 151
Syndicated Loans
FACILITY – Limit reduction details
DEC.EFF.DT to DEC.PERC are associated multi value fields and are opened up only for revolving
facility. In the above example the facility is for USD 50 million. The value date of the facility is March
29, 2001 and the maturity date is January 01, 2004. On Jan 01, 2002 the facility would stand reduced
to USD 35 million (reduction of USD 15 million), on Jan 01, 2003 to USD 20 million and on Jan 01,
2004 the facility would mature. The reduction may be defined in DEC.AMOUNT or DEC.PERC. If
reduction were expressed in percentage terms, the system would calculate the absolute amount. The
build-up of the SL.EXPOSURE.LEVEL file and subsequent processing is explained later.
Drawings under the Facility

Drawdown under a facility (for a loan type product) is handled through the SL.LOANS template. For
Guarantee or Standby Letter of Credit products drawdown is handled in MD.DEAL. The @ID of the
SL.LOANS template is the Pre-Syndication ID/Tranche Code/4 Digit Sequence Number. The amount
available under each tranche in a facility with individual participant share is held in an internal file
called SL.ACCOUNT.BALANCES. The screenshot below shows the information available in this file
for one of the facilities in our example.

Page 53 of 151
Syndicated Loans
SL.ACCOUNT.BALANCES
A drawing may be input by directly inputting the ID in the SL.LOANS template or through an Enquiry
SLL.INPUT. For the above example the ID of the drawing would be SL0108800002 (Pre-Syndication
ID)/001 (Tranche Code)/0001. It is sufficient if the user inputs the Pre-Syndication ID and tranche code.
The system would form the full ID by suffixing the four-digit sequence number.
An alternative method of inputting a drawing is through SLL.INPUT enquiry. The enquiry may be
invoked as shown below:
This enquiry has two selection criteria. One is the Pre-Syndication ID and the other Facility Mnemonic.
If the Key ID were chosen, the display would be all the facilities under the Pre-Syndication and the
amounts available in each tranche in the FACILITY.

Page 54 of 151
Syndicated Loans
Selection criteria for SLL.INPUT
The above selection criteria would display the following information:
SLL.INPUT – Example Results of the enquiry24
The display shows that two facilities are under the Pre-syndication. The tranche code under each of
the facility and the available amount under the tranche are also displayed. The drawing ID for each
tranche is displayed. If a drawing needs to be input against tranche 001, then the user may select the
tranche and the system would take the user to the SL.LOANS template with an ID generated by the
system.
In the enquiry the user may select the Facility Mnemonic (if input in the FACILITY file) as selection
criteria. In this case the system would display the tranches available under this facility alone.
SLL.INPUT – Launch of enquiry with mnemonic

Page 55 of 151
Syndicated Loans
The display for the above selection would be as follows:
SLL.INPUT – Results of enquiry
The user may select the tranche under which the drawing needs to be input and the system would
launch the SL.LOANS screen with the ID generated.
Drawdown Details
The user may input minimum details for drawdown. A drawing may be done with inputs in the few
fields only as shown below:

Page 56 of 151
Syndicated Loans
SL.LOANS – Drawing details
The borrower of the deal should be the facility customer or any allowed customer in the tranche. The
currency of the deal should be input in DEAL.CURRENCY. The currency should be the facility currency
or any allowed currency under the tranche.
The amount of the drawing may be expressed either in the deal currency or in the facility currency. For
example if a borrower has been granted a USD 100 million facility and wishes to draw funds in GBP.
The borrower may wish to draw funds as follows:
• GBP 20 million or
• USD 30 million’s equivalent in GBP

Page 57 of 151
Syndicated Loans
SL.LOANS – Drawing in Base currency equivalent
If the amount to be drawn is expressed in deal currency, the same should be entered in the AMOUNT
field. If the borrower indicates the amount in facility currency then the same should be entered in
BASE.CCY.AMT (as shown in the screenshot above). Input in one of these fields only is permitted.
Either the deal amount or the facility currency equivalent amount is calculated by the system using the
value in BASE.CCY.CONV. The value in this field represents the exchange rate between the deal
(drawing) currency and the facility (base) currency. The user may input an exchange rate in this field
or the system would default the mid rate from the currency table. The screenshot below shows the
calculations performed by the system for a GBP drawing under USD facility:
SL.LOANS – Exchange rates

Page 58 of 151
Syndicated Loans
In the above example the amount sought by the borrower was the equivalent of USD 20 million in
GBP. The system has calculated the deal amount using the mid rate of 1.705.
The field OWN.AMOUNT indicates the T24 Bank’s share in the drawing and is system written. Only this
amount is recognised as a loan asset in the T24 Bank’s books and it will be system populated, in this
instance with 3,519,061.58, once the deal is committed.
The other details to be input are the product category, the purpose of drawing (ID of SL.PURPOSE
table), drawdown account, liquidation mode and the liquidation account. The interest rate applicable
for the drawing would be defaulted by the system if default values were available in the
SL.FACI.RATES table or from the FACILITY (if the drawing is in facility currency). The user may
however modify the system defaulted values.
The tax applicable for interest is processed in the same way as the commitment fee, which has been
explained earlier.
The date on which the drawing would mature should be input in the MATURITY.DATE field. It is
practice to rollover the drawing on the maturity date. This is typically practiced for contracts wherein
the interest rate is applied for a particular drawing period of say 1/3/6 months. At the end of this period,
the drawing is rolled and the interest rate applicable for that period (LIBOR 1/3/6 month) prevailing at
that point in time is applied. The drawing is rolled over till the final maturity date either for the original
amount or net of repayments. In such scenarios the rollover date may be input as the maturity date
and the final maturity date may be input in EXPIRY.DATE. It may be noted that the system would not
perform any automatic rollover. The rollover should be done manually through the SL.ROLLOVER
application.
Backdated Loans
Loans under syndication can be input with a value date that is less than today. However this can be
done only in cases when it otherwise satisfies the normal input conditions of a Loan, viz., Validity of
the Tranche under question, availability of funds under the Tranche, within the exposure level of each
of the participants, etc. Impact of limit line and collection of any charges attached to this would be
done as on the date of input of such a backdated Loan. In the case of commitment fee, the
recalculation would be done for the current schedule, but if the value date were be set with a date prior
to current fee schedule, then this feature does not cover the computation and application of the
proportionate fee that is outside the current schedule.
To cater to instances such as undrawn commitment amount under the Tranche is less than the loan
amount although the Tranche is live, the user has the option of input of SL.BUY.SELL, for Principal
Movements that are backdated. Such an input of backdated Buy Sell may in circumstances warrant
amendment of SL.EXPOUSRE.LEVEL or SL.REPAYMENT.SCHEDULES as the case may be.

Page 59 of 151
Syndicated Loans
Interest Payment
The interest payment method may be of arrears type or discounted type. INT.PYMT.METHOD would
accept value of 1 or 2. 1 indicates arrears type and 2 indicates discounted type interest method.
Discounted interest type is allowed only for fixed rate contracts. For a fixed rate contract, the rate of
interest should be input in INTEREST.RATE. For a floating rate contract, the base rate should be input
in INTEREST.KEY and the spread in CUSTOMER.SPREAD.
The internal file SL.LOAN.BALANCES would hold details of interest due from the borrower. The
system would also maintain a similar balance file for an individual participant wherein information with
respect to the interest rate applicable to individual participant and interest amount due to individual
participant is held.
Liquidation Mode
The field LIQUIDATION.MODE would accept values Internal or Automatic. In case of Automatic
liquidation the amounts due under the contract on the due date would be liquidated automatically into
the liquidation account specified in the contract. In case of Agent Bank or Agent Cum Participant Bank,
there would also be an automatic pay out of funds due to the other participants on the due date.
In case the liquidation and pay out of funds should be done after the bank has confirmed that it has
received the amounts due from the borrower, Internal liquidation mode should be used. If this option is
chosen only the amounts due to T24 Bank is parked in an internal account on the date of liquidation.
The system would write the dues from the borrower and the amount due to other participants in
relevant internal files. Applications SL.ROUND.ADJ and SL.OD.SETTLE may be used for adjustment
and settlement of funds. Accounting entries for both types of liquidation are explained under the
Accounting section.
Principal movement in an existing Loan
Principal Increase/Decrease in an existing undiscounted loan is now permitted during the Tenor
ranging between the value date and the maturity date of the Loan. In such instances where the loan
repayment schedules are defined, all future schedules would be deleted and one single schedule
would be written on the maturity date. Such a change would not happen if the schedules were defined
just for the Facility. The movement input shall however not conflict with the SL.EXPOSURE.LEVEL.
For Principal reduction, new participants would not be permitted, but such a decrease could result in
exit of a participant. At instances where the repayment schedules are defined at the Facility level (non-
revolver), forward dated principal decrease would be permitted at the Loan level. Such a future event
outstanding at any time during the tenor the Loan is confined to one.
For Principal increase, new participants would be permitted provided such a participant is already
recorded in the Tranche and has adequate share to participate. However no swapping of participants
would be allowed during such an increase.

Page 60 of 151
Syndicated Loans
If the loan were in a currency different from that of the Facility, then the impact of the Principal
movements in the Facility would happen at the historic rate. Any adjustment of interest and
commitment fee on account such principal movements would be confined to the current schedule only.
Share of Participants
The share of individual participant in the drawing would be defaulted by the system based on their
respective share in the tranche. The user may however modify the share.
SL.LOANS – Share of participants
The above screenshot shows the values defaulted by the system for each participant. Fields
PARTICIPANT to PART.AMT.B.CCY are associated multi value fields. The system defaults the
participant’s share in deal currency in PART.AMT and in facility currency equivalent in
PART.AMT.B.CCY.

Page 61 of 151
Syndicated Loans
The screenshot below is for a GBP drawing under a USD facility.
SL.LOANS – Share of participants in base currency
Holding Rate
At times the interest rate for a drawing is determined a few days before the maturity of the drawing.
However, a notional rate is input for the purpose of accrual. Such notional rate could be defined in
HOLDING.RATE. If holding rate is input, interest details cannot be input. On determining the
applicable interest rate, the user may input basic interest key reference and spread or fixed rate for the
contract. The rate would be applied for the current interest period only and the system would perform
an accrual adjustment automatically.

Page 62 of 151
Syndicated Loans
SL.LOANS – Definition of holding rate
Exchange Rate & Interest Rate Fixing
Normally the borrower makes a request for a drawing with sufficient notice. The Agent bank forwards
the borrower’s proposal to the participating banks to seek their approval for the drawing. In T24 such
contracts may be entered with a forward value date. In case the borrowing is in a currency different
from the facility currency the exchange rate is fixed few days before the value date. However until
such time the available amount under the facility needs to be blocked. A notional exchange rate may
be input by the user or the system would use the mid rate from the currency table for updating the
facility and limit available amounts. This exchange rate should be input in BASE.CCY.CONV. The
exchange rate fixing date in such situations may be input in EXCG.FIX.DT. Once the exchange rate
has been fixed the same could be entered in FIN.BCCY.RATE. At this stage the system would drop
the earlier calculated values and update all the relevant records with the new amounts.
The interest rate applicable for the period is also normally fixed a few days before the value date. The
interest rate fixing date should be input in INT.FIXING.DATE.
The example below explains the workflow:
Facility Amount : USD 100 million

Allowed Currencies : USD, GBP
System Date : Jan 01, 2002
Request Date : Jan 01, 2002
Value Date of Drawing : Feb 01, 2002
Exchange Rate Fixing Date : Jan 28, 2002

Page 63 of 151
Syndicated Loans
Amount Sought : GBP 20 million

Current Exchange Rate : 1.5
The above drawing should be input in two stages.
Stage I
A forward dated drawing should be input with value date as Feb 01, 2002 for GBP 20 million. At this
stage the exchange rate used by the system would be 1.5. The facility currency equivalent of the
drawing would be USD 30 million. Thus the available amount under the facility would be USD 70
million. The exchange rate may be input in EXCG.FIX.DT.
Stage II
Once the exchange rate is fixed the same may be input in FIN.BCCY.RATE. Assuming the exchange
rate has now moved to 1.6, the system would update the USD equivalent of the drawing as 32 million.
Accordingly the available amount under the facility would be updated as USD 68 million. The share of
all participants’ would also be updated.
Amendments
Interest rate changes are handled by the set of fields NEW.INT.RATE, NEW.INT.SPREAD and
NEW.INT.EFFECT. For a fixed rate contract the new interest rate should be input in NEW.INT.RATE
and the effective date in NEW.INT.EFFECT. For a floating rate contract the new spread may be input
in NEW.INT.SPREAD along with the effective date.
The maturity date of a drawing may also be changed if required. Such change should be in conformity
to facility level terms like facility maturity date etc.
Types of Liquidation mode

The SL module supports two types of business flow while handling liquidation of dues. If the Agent
bank’s practice is to automate repayments to participants on the due date, expecting funds to be paid
by the borrower, option AUTOMATIC could be chosen.
In other cases the Agent may effect repayments to participants only after sighting credit in its Nostro.
In such cases, the option INTERNAL could be chosen.
If LIQUIDATION.MODE were INTERNAL, entries for disbursement would be raised in a manner

similar to that of AUTOMATIC. However, on the schedule date:
• Accounting would happen only for T24 bank’s portion. For SL.LOANS – value in OWN.AMOUNT
would get liquidated to the PRIN.LIQ.ACCT specified and interest share into INT.LIQ.ACCT.
• The overdue would get written to SL.OD.PART and SL.OD.DUES files.

Page 64 of 151
Syndicated Loans
Writing Overdue files
The ID of SL.OD.DUES would be keyed by the ID of the FACILITY / SL.LOANS reference,

hyphenated by the due date. This would hold information as regards the aggregate due, the due
pertaining to each asset type, and the share of each participant in such due. Information in this file is
held by due date.
SL.OD.DUES – Commitment fee dues
The above record shows details of due against facility reference SL003350000201 on 01 December
2000. A commitment fee of 2,777.78 is due from the borrower and share of each participant is also
shown.

Page 65 of 151
Syndicated Loans
SL.OD.DUES – Interest & Principal dues
In the above example it could be seen that SL.LOANS dues are aggregated and shown with break-up
details of asset type wise dues as well as share of each participant against each asset type. For the
sake of easy reference the following words have been substituted instead of displaying the actual
asset type defined in the parameter:
CMT – Commitment fee
INT – Interest
PRIN – Principal

Page 66 of 151
Syndicated Loans
SL.OD.PART would get written for T24 bank as well as other participants. This file will hold information
from a participant perspective where dues for different dates are aggregated and shown. Screenshots
of SL.OD.PART for the above two overdues are provided hereunder for the first participant only.
Share of first participant of commitment fee due against the FACILITY.
SL.OD.PART – Commitment fee due
Share of first participant of interest and principal dues against the SL.LOANS.
SL.OD.PART – Interest & Principal dues

Page 67 of 151
Syndicated Loans
Part settlement of dues

Partial settlement of dues is also possible through SL.OD.SETTLE. Dues of a particular date can be
settled by giving the SL.OD.DUES ID in SL.OD.SETTLE application. If a particular component/
components are to be settled then the same can be done by giving the FACILITY or SL.LOANS ID
in SL.OD.SETTLE application.
SL.OD.SETTLE
When the part amount to be settled is input in the field TOT.PAY.AMT through SL.OD.SETTLE
application, the system distributes the amount amongst all the components on pro rata basis.
However, if it is desired that the amount should be appropriated towards a particular component or
components then the user has to manually input values in the respective fields or amend the defaulted
values after validating. If there is more than one SL.OD.DUES record and part settlement is done
either by giving the FACILITY ID or SL.LOANS ID, then the dues will be settled in chronological
order of creation date.

Page 68 of 151
Syndicated Loans
SL.OD.SETTLE

Page 69 of 151
Syndicated Loans
SL.OD.SETTLE CONT
Rounding Adjustments
The application SL.ROUND.ADJ is used to facilitate updating rounding adjustments to participant
balances. This application is available only if LIQUIDATION.MODE in the FACILITY / SL.LOANS
(SLL) is set as INTERNAL.
This application enables rounding adjustments for:

• Commitment fee
• Interest for loans and
• Tax for the above two
•
The agent of a facility would apportion the interest (or commitment fee) amongst the participants
following a particular method of rounding. In case the borrower follows a different method of rounding,
the apportionment for interest (or commitment fee) and the tax thereon, if any, would vary. The
SL.ROUND.ADJ application allows the agent to re-apportion the dues to the participants in line with
the borrower's calculation.

Page 70 of 151
Syndicated Loans
SL.ROUND.ADJ
In the same example, it is presumed that the borrower has calculated the share of the second and
third participants as 555.57 (instead of 555.56) and 555.55 (instead of 555.56). The manner in which
the Agent bank is to account for this adjustment is shown above. On authorising SL.ROUND.ADJ, the
dues held in respective participant balances files are re-written to reflect the revised amount.
The purpose of this application is to handle rounding adjustments and in order to prevent input errors
by the user a permissible deviation value (from the existing calculation) may be defined in
MAX.ROUNDING in SL.PARAMETER. The system would perform validations to ensure that the
amounts adjusted are within this allowed deviation. Adjustments are possible for interest, commitment
fee and tax thereon. If T24 bank's share is adjusted, accrual adjustment is handled online.
There should be a valid record in SL.OD.DUES with similar ID (Facility/SLL plus date) for user to do
adjustment.
Adjusting for Skimming Income

SL.ROUND.ADJ may be used to apportion the skimming income to the Agent. Let us take two
examples to understand this workflow.
Scenario 1 –T24 bank acts as an Agent and is also a Participant in the syndicate. Commitment fee
payable by the borrower is 1% (10,000). The syndicate is made up of:
Participant Share % fee Fee (share)

T24 bank 50% 1.00% 5,000
Participant A 30% 0.75% 2,250
Participant B 20% 0.90% 1,800

Page 71 of 151
Syndicated Loans
In this case the aggregate dues to all participants is 9,050, and the Agent skims the difference of 950.
When SL.OD.DUES is written for such case, the share of each participant would not equal the
aggregate dues from the borrower and SL.ROUND.ADJ should be used to re-allocate the share,
increasing T24 bank’s share to 5,950.
Scenario 2 –T24 bank acts as a mere Agent and does not participate in the syndicate. Commitment
fee payable is 1% (10,000) by the borrower and the syndicate is made up of:
Participant Share % fee Fee (share)

Participant A 60% 0.90% 5,400
Participant B 40% 0.85% 3,400
Here, the skimming profit of 1,200 needs to be allocated to the Agent.
If T24 bank acts as only an Agent and does not participate in the Facility while writing participant's
information in SL.ROUND.ADJ application, T24 bank's reference is also added with share showing
zero value. This is done especially to accommodate skimming adjustments where the user may input
the skim income as the revised share for the Agent bank.
Settlement of dues
When the borrower pays against overdue, the application SL.OD.SETTLE may be used. Accounting
entries would be raised debiting the PAY.ACCOUNT for value in TOT.PAY.AMT, crediting NOSTRO for
participant’s share and appropriate liquidation account mentioned in the Facility/SLL.

Page 72 of 151
Syndicated Loans
SL.OD.SETTLE
After doing changes in SL.ROUND.ADJ for the second and third participants, it could be seen that
the system now allocates the revised share of commitment fee to respective participants.
Rollovers
During the tenure of the facility, the participants may allow the borrower the leeway to tailor his loan
liabilities under the facility, such that on maturity of these loans, they can be extended for a further
period (in different currencies), reduced/increased in terms of the number of loans etc With a view to
reducing the interest rate risk, the borrower would draw for a short term with an option to rollover.

Page 73 of 151
Syndicated Loans
Keeping the exchange rate and interest rates in view, the borrower would have several options at the
time of maturity of drawing/s such as:
• Rollover of the drawing for a further period in the same currency.

• Rollover of the drawing for a further period in another currency.
• Rollover of few drawings (in same or different currencies) for a further period by
merging/consolidating these drawings into one or more drawings.
• Rollover by splitting a drawing into many drawings (in same or different currencies).
For each of the above options further flexibility is required to cater for the following:
• Different term for the resultant drawing/s.

• Different rate of interest (based on the new term).
• Rollover with principal increase.
• Rollover with principal decrease (net of repayment of the existing drawing).
• Netting of payment for each currency.
The SL module supports all the above requirements through the SL.ROLLOVER application. A pre-
requisite for this functionality is that rollover of loans should be permitted in the FACILITY. Such
information is captured in ROLLOVER.Y.N in the FACILITY file. To enable the rollover functionality
this field should have been flagged YES.
The above requirements have been broadly covered under three operations. The field OPERATION in
SL.ROLLOVER would accept values ROLLOVER, MERGER or SPLIT. The selection of the option
should be done with the following consideration:
• Rollover option may be chosen if one existing drawing is to be rolled over for a further period in
the same or different currency. In this situation, there would be one underlying drawing and the
resultant drawing would also be one, though the currency may be different.
• Merger option may be chosen if more than one existing drawing is to be merged into one or more
drawing(s). The resultant drawing(s) could be in any allowed currency. The maturity date of all
the existing drawings to be merged must be the same.
• A split option may be chosen of one existing drawings is to be split into many drawings. The
resultant drawings could be in any allowed currency.
Processing Rules
• The consideration for rollover, merger or split will always be the facility currency equivalent of the
existing drawing/s.

Page 74 of 151
Syndicated Loans
• Any principal reduction must be input by the user in the currency of the existing drawing. In such
cases the system would calculate the facility currency equivalent net of repayment and this
amount would be the consideration for rollover, merger or split.
• The amount of deal in the currency of the resultant drawing/s would be calculated by the system
using the system derived or user input exchange rate.
• When the resultant drawing is more than one, then the user must indicate the facility currency
equivalent of each of the resultant drawing so that the system would calculate the deal currency
equivalent.
• Settlement is always handled through pay and receive mode. The borrower pays his old loans in
the currency of the drawing and the participants disburse the new loan amounts in the currency
of the new drawings.
• Principal increase, if any, is apart from the system-calculated amount in the deal currency.
• Exchange variance would be checked only for rollover operation. Further the rollover should be
from one optional currency to the same optional currency.
• The borrower would repay the drawing/s getting rolled over. There would be disbursement for the
new/resultant drawing in their respective currencies. However, for a single currency the amount
to be paid by the borrower and to be disbursed by the participants’ would be netted off.
Business examples
The following examples explain the above processing rules:
Facility Currency : USD

Allowed Currencies : USD, GBP, EUR
Facility Amount : 50,000,000
Exchange Variance (GBP/EUR) : 5%
Exchange Rates for period T 0 and T1
Business examples for Rollovers
Exchange Rate T 0 period T 1 period

GBP/USD 1.5 1.55
EUR/USD 0.90 0.96
Drawing 1 -GBP drawing of 10,000,000 in T 0 period. Facility currency equivalent is USD 15,000,000.
The drawing matures at T 1 period.
Drawing 2 – EUR drawing of 10,000,000 in T 0 period. Facility currency equivalent is USD 9,000,000.
The drawing matures at T 1 period.

Page 75 of 151
Syndicated Loans
Drawing 3 – USD drawing of 10,000,000 in T 0 period. The drawing matures at T 1 period.
Case I – GBP drawing rolled over in GBP
Facility Currency Equivalent of the drawing 15,000,000

Exchange Rate (T 1 period rate taken) 1.55
Rollover amount of resultant drawing (GBP) 9677419.35
Exchange Variance 3.23%
In this case, since the exchange variance is below the stipulated 5% defined for the currency and
hence the rollover amount would be retained as GBP 10,000,000, though the system calculated
amount is different. Since the existing drawing amount is retained there would not be any pay-in or
payout.
However, the interest due on the existing drawing would be settled.
Case II – GBP drawing rolled over in USD

Exchange Rate (T 1 period rate taken) Not Applicable
Rollover amount of resultant drawing (GBP) 15,000,000
Exchange Variance Not Applicable
Exchange variance is not applicable in this case as the rollover is from GBP to USD. The borrower
would pay GBP 10,000,000 and the participants’ would disburse USD 15,000,000. Interest on GBP
drawing would be settled separately.
Case III – EUR drawing rolled over in EUR

Rollover amount of resultant drawing (EUR) 9,375,000
Exchange Variance 6.25%
Since the exchange variance is more than the stipulated 5%, the new deal amount would be EUR
9,375,000. The net amount to be paid by the borrower is EUR 625,000. The
SL.ROLLOVER.BALANCES file would hold the net amount of funds to be paid or received for each
currency involved in the rollover transaction. In the above case as only one currency is involved, the

Page 76 of 151
Syndicated Loans
balance file would hold EUR 625,000 as the amount to be received by the banks with individual
participant’s share. Interest on the existing EUR drawing would be separately settled and would not be
included for netting in the same currency.
Case IV – USD drawing rolled over in USD

Exchange Rate (T 1 period rate taken) Not Applicable
Exchange variance is applicable only if the rollover is from one optional currency (GBP/EUR in this
example) to the same optional currency. There would be no pay-in or payout of funds.
Case V – GBP, EUR and USD drawing merged into one GBP drawing
Facility Currency Equivalent of GBP drawing 15,000,000

Facility Currency Equivalent of EUR drawing 9,000,000
Facility Currency Equivalent of GBP drawing 10,000,000
Total Facility Currency Equivalent of all the 34,000,000
drawings
Exchange Rate (T 1 period taken) 1.55
Rollover amount in GBP 21,935,483.87
The net amount to be paid and received would be as follows:
Currency Settlement
GBP The participants’ would pay 11,935,483.87
EUR The borrower would pay 10,000,000
USD The borrower would pay 10,000,000
The above information would be held in the SL.ROLLOVER.BALANCES file. The interest on the
existing drawings would be settled separately.
Case VI – GBP drawing split into GBP and EUR drawing
In this case the facility currency equivalent of the existing GBP drawing to be split into GBP and EUR

Page 77 of 151
Syndicated Loans
drawing must be input. For the purpose of illustration it is assumed that the facility currency equivalent
of 15,000,000 is apportioned as 10,000,000 for the new GBP loan and the balance 5,000,000 for the
new EUR loan.
Facility currency equivalent of existing drawing 15,000,000

Facility Currency Equivalent of the new GBP drawing 10,000,000
(to be input)
Rollover amount of resultant drawing (GBP) 6,451,612.90
Facility Currency Equivalent of the new EUR drawing 5,000,000
(to be input)
Rollover amount of resultant drawing (EUR) 8,333,333.33
In the above case the system would create two loans, one for GBP 6,451,612.90 and the other for
EUR 8,333,333.33. The net amount to be paid and received would be as follows:
Currency Settlement
GBP The borrower would pay 3,548,387.10
EUR The participants’ would pay 8,333,333.33
The interest on the existing drawings would be settled separately.
Case VII – GBP drawing rolled over in EUR after repayment of 2,000,000
In this case only the facility currency equivalent of the net amount is considered for rollover.
Deal Amount of existing drawing (GBP) 10,000,000

Repayment (GBP) 2,000,000
Net deal amount considered for rollover 8,000,000
(using T 0 exchange rate)

Page 78 of 151
Syndicated Loans
The net amount to be paid and received would be as follows:
Currency Settlement
GBP The borrower would pay 10,000,000
EUR The participants’ would pay 12,500,000
The above cases are only illustrative and there could be many such combinations in practice that the
system would support.
A few typical examples of rollovers are shown in the following sections.
Rollover
A borrower may not withdraw funds from the facility for the whole of the period required by him. In
order to take advantage of currency/interest movements, he may borrow for a shorter period and
rollover the loan for another (shorter/longer) period, either in the same currency or in a different
currency. There are also fields to capture principal increase/decrease at the time of rollover.
The following example shows a GBP loan of 5M being rolled over into a JPY loan. The transaction
also involves reduction of GBP 1M from the earlier loan. The drawdown rate, 116,
(BASE.CCY.RATE) for the JPY loan has used the appropriate rate from the CURRENCY table.
SL.ROLLOVER – Rollover with currency change and principal reduction

Page 79 of 151
Syndicated Loans
The file SL.ROLLOVER.BALANCES shows participant-wise details of the receive currency (old loan of
GBP 4M in this case), and their share in the pay or rollover currency (new loan of JPY 858.4M). It
shows that Caja Bank will receive GBP 1.2M on the rollover date from the borrower and disburse JPY
257,520.000 to it. The other participants will also have to receive their respective shares of GBP and
disburse in JPY to the borrower.
SL.ROLLOVER.BALANCES – For Rollover
It must be noted that the amount that is eligible for the rollover transaction (as also in the case of
merger and split) will be the equivalent base currency amount of the rolled over/merged/split loan.
For example, an amount of GBP 100,000 is drawn from a USD facility at the prevailing exchange rate
of 1 GBP = 1.5 USD. The base currency equivalent in this case will be USD 150,000. On maturity of
the GBP loan, an amount equivalent to USD 150,000 will be eligible for rollover. However, if the

Page 80 of 151
Syndicated Loans
exchange rate by now has moved to 1 GBP = 1.6 USD, the (new) rolled over GBP loan will be for GBP
93,750.This will necessarily involve a repayment of GBP 6,250 by the borrower. Conversely, if GBP
has moved to 1 GBP = 1.4 USD, the resultant GBP equivalent is GBP 107,142 and hence the
participants would disburse GBP 7,142 to the borrower.
Continuing the above example, the participants may decide that for minor variations in exchange rate
between the time of drawdown and the time of rollover, the rolled over loan need not be resized
(involving repayment/fresh disbursement as in the example given above). This may be controlled by
making use of the field EXCHANGE.VARIANCE in the FACILITY file.
For example, a GBP loan of 3M is drawn down from a USD facility. The exchange rate on drawdown
is USD 1.85/GBP, the base currency equivalent being USD 5.55M. The loan is later rolled over on
maturity for a further period, at which time the exchange rate moves to USD 1.875/GBP. If the
exchange variance in the FACILITY file is 5%, then this new rate of 1.875 being within the 5%
variance, the earlier GBP amount of 3M will be retained. In the screenshot below, note that the field
DEAL.AMT and RMS.AMT show the same amount of 3M.
SL.ROLLOVER – Exchange Variance
In the above example, if the exchange rate were USD 1.9875 at the time of rollover, the exchange
variance of 5% would be exceeded. Hence the RMS.AMT would now be calculated at GBP (i.e. USD
5,550,000/1.9875) as shown in the screenshot below.

Page 81 of 151
Syndicated Loans
SL.ROLLOVER – Calculation of rollover amount
As the GBP loan has now been reduced to GBP 2,792,452.83 from GBP 3,000,000 on the rollover
date, the participants of the syndicate will stand to receive GBP 207,547.17 from the borrower, as
shown in the screenshot below.

Page 82 of 151
Syndicated Loans
SL.ROLLOVER.BALANCES – Participant shares
Caja Bank will receive GBP 62, 264.15 from the borrower with the remainder shared as per the above
schedule.
Merger
This option may be used to merge two or more loans of the same maturity date and of the same
tranche, into any number of other loans. The new loans could be in entirely different currencies from
the original loans.
The following example shows a EUR loan and a GBP loan being merged into a JPY loan.

Page 83 of 151
Syndicated Loans
SL.ROLLOVER

Page 84 of 151
Syndicated Loans
SL.ROLLOVER – Merger of loans
In the above example, GBP 200,000 and EUR 500,000 respectively have been reduced from the
source loans on the date of the merger. The remaining aggregate base amount (valued at the
respective USD/GBP and USD/EUR rates) amounting to USD 5,805,000 has been converted into a
JPY loan.
The screenshot of SL.ROLLOVER.BALANCES file below shows the GBP and EUR amounts to be
received by the participants due to principal decrease and the JPY loan disbursement to be made by
the participants.

Page 85 of 151
Syndicated Loans
SL.ROLLOVER.BALANCES – Merger

Page 86 of 151
Syndicated Loans
SL.ROLLOVER.BALANCES – For Operation = Merger (cont)
Split
This is to be used to split one loan into two or more loans. The new loans could be in the same
currency or other currencies.
Split operation is commonly used when the borrower is unable to rollover the entire drawing for a
further period due to exposure level covenants. In such cases the existing drawing is split so that one
(or more) drawings mature before the exposure reduction date while the other portion may continue
beyond this date.
The following example shows a GBP loan split into two drawings, one in EUR and the other in JPY.

Page 87 of 151
Syndicated Loans
SL.ROLLOVER – Split

Page 88 of 151
Syndicated Loans
SL.ROLLOVER – Split (cont)
The corresponding SL.ROLLOVER.BALANCES file is shown below.

Page 89 of 151
Syndicated Loans
SL.ROLLOVER.BALANCES – For Operation = Split
There is a check to see that as a result of the rollover/merger/split transaction, the exposure levels are

Page 90 of 151
Syndicated Loans
not exceeded. Reduction (repayment) of facility would normally happen in a phased manner. When
drawings are made, the maturity date of the drawings are checked to see whether the contemplated
exposure levels projected are adhered to. A similar check is repeated at the time of handling rollover.
For example, for a facility of USD 100M, facility level repayment schedules starting from 01 June 2002
are defined in the SL Repayment Schedules application as follows:
SL.REPAYMENT.SCHEDULES
As a result, the SL.EXPOSURE.LEVEL file would be built using the SL.EXPOSURE.LEVEL

application.

Page 91 of 151
Syndicated Loans
SL.EXPOSURE.LEVEL
Assume that the first drawing was for the whole amount of USD 100M maturing on Dec 15, 2002 If the
borrower wants to rollover the whole amount for a further period of two years, the system will not
permit this transaction, as the exposure level would have come down to USD 88M by June 01, 2002.
The screenshot below shows the error message generated by the system when such a rollover is
attempted.

Page 92 of 151
Syndicated Loans
SL.ROLLOVER – Error when exposure levels are breached
Note on Reversal of SL.ROLLOVER

Reversal is possible under certain circumstances in SL.ROLLOVER to allow correction of invalid
details. When loans are ROLLED OVER, MERGED or SPLIT, the new loan created will have a ‘FWD’
status, until the event day is reached. If the loans used for the ROLLOVER are found to be incorrect,
the SL.ROLLOVER can be reversed and re-done once the underlying deals are corrected. The
reversal will only be allowed if the event date is less than or equal to the Expiry date of the original
loan.
Buying and selling transactions

During the tenure of the syndicate, the following eventualities may arise:
1. Increase in the facility amount (principal increase).

2. Decrease in the facility amount (principal decrease).
3. Sale/Purchase of contingent portion (i.e. that part of the facility which has not been drawn
down) from between existing participants, or introduction of a new participant by purchase of
contingent portion from an existing participant.
4. Sale/Purchase of non-contingent portion (i.e. the loans drawn) between existing participants or
introduction of a new participant by purchase of a loan from an existing participant.
All the above activities may be transacted using the SL.BUY.SELL application. However, to enable
using this application, fields ALLOW.CONT.SALE and ALLOW.NC.SALE in the FACILITY file should
be set to YES for the relevant tranche(s).
There are two transaction types that are allowed in SL.BUY.SELL.

Page 93 of 151
Syndicated Loans
(1) PM (i.e. principal movement) that encompasses the activities in points 1 and 2 above.
(2) BS (i.e. buy/sell) that encompasses the activities in points 3 and 4 above.
SL.BUY.SELL – Transaction types

Page 94 of 151
Syndicated Loans
AGENT and AGENT-CUM- PARTICIPANT FUNCTIONALITY
Principal Increase
A principal increase is permitted by increasing the facility amount of one of the existing participants or
by introduction of a new participant. The principal increase could be allotted amongst the existing
tranches or result in creation of new tranches.
Take the example of a facility for USD 100M, divided between three banks (Caja, BNP and Amex) in
the ratio 40M:30M:30M. The facility has two tranches, 001 and 002. The screenshot below shows
increase in the facility amount by 5M in tranche 001 by Amex, through SL.BUY.SELL.
SL.BUY.SELL – Principal increase – Existing tranche
The increase of 5M could also have been split up between tranches 001 and 002 in the desired ratio.
Within any tranche, if specific participants and amounts are not entered, the system will distribute the
amount pro rata among participants in the ratio of an existing share.

Page 95 of 151
Syndicated Loans
The example below shows a principal increase with the entry of a new participant, Dresdner. Also, a
new tranche 003 has been introduced. The system will automatically assign the end date of this
tranche as the DRAW.MAT.DATE. Any change required to this date may be done by visiting the
FACILITY file.
SL.BUY.SELL – Principal increase with participant entry
Principal Decrease
A principal decrease may be done only for an existing participant in the syndicate and from an existing
tranche. In this case the amount entered in TOTAL.SL.AMT, TR.AMT and PART.AMT fields should be

Page 96 of 151
Syndicated Loans
preceded by a negative sign. The following screenshot shows a principal decrease of 2M, 1M each
from tranche 001 and tranche 002.
SL.BUY.SELL - Principal decrease
Here too, the reduction will be done pro rata among existing participants, if not specified.
Sale / Purchase of Contingent portion

This involves selling/purchase of a part of the (undrawn) facility between participants. A sale
transaction by an existing participant could be to a new entrant. It is also possible to capture the
resultant profit/loss in TOT.CONSIDERATION. Such profit/loss may either be recognised at the time

Page 97 of 151
Syndicated Loans
of the transaction or it may be amortised through the life of the facility by inputting “YES” in the
AMORTISE.PREM.DISCOUNT. If this field is left blank, the entire profit/loss will be written to P&L on
the date of the transaction.
The following example shows a contingent sale of 3M by Caja to Amex. The sale has been made at a
profit of USD 10,000, which will be amortised.
SL.BUY.SELL – Contingent transaction
Sale / Purchase of non-contingent portion
Purchase or sale of loan between participants is done by effecting a non-contingent (SELL.TYPE

should be NC) sale/purchase. Purchase/sale of non-contingent amount also amounts to purchase/sale
of the underlying contingent amount. An existing participant may also sell a loan to a new participant,
thus introducing him to the syndicate. A single transaction involving trading on multiple loans in the
same currency may be recorded.

Page 98 of 151
Syndicated Loans
It is possible to sell/buy either the entire value of the drawing or a portion of it. This may also result in
exit of a participant from a syndicate in case the entire exposure is sold.
The accrued interest up to the date of sale is payable to the seller and hence the system would hold
this information until the interest due date. On the date of settlement, the interest amount would be
appropriated accordingly.
The following example shows a loan of 1.2M being sold by Caja Bank to Amex UK for 1.206M.
SL.BUY.SELL – Non-contingent transaction
Mere Participant Functionality

The buy/sell functionality offered for a bank which is a mere participant in the syndicate, differs only in
the following respects:

Page 99 of 151
Syndicated Loans
1) Sale / Purchase of Contingent portion – Purchase is effected through SL.BUY.SELL as a

principal increase transaction. Similarly, contingent sale is handled as a principal decrease.
2) Sale / Purchase of Non-contingent portion – this is done through the SL.LOANS template which
also provides fields for buy/sell consideration and amortisation of premium/discount. If the mere
participant were to buy a drawing, a record in SL.LOANS may be created for the value of loan bought.
To enable recording information on consideration paid and decision to amortise the premium /
discount on such transaction, appropriate fields in the SL.LOANS template could be used. These
fields are opened for input only for a mere participant facility.
Collection of charges
The User would have the flexibility of collecting single or multiple charges for different activities
performed. The charge may be collected on a one-time basis or could be frequency based. The
charges so collected may be amortized or absorbed into P&L immediately as defined by the user.
The charges that are to be collected would have to be defined in the FT.COMMISSION.TYPE or
FT.CHARGE.TYPE tables. The charges thus defined are attached to SL.CHARGE.ACTIVITY
application for default into SL.CHARGE application. The functionality of the individual applications is
dealt with in detail in this section.
SL.CHARGE.ACTIVITY
The ID of this table would be three-digit alphanumeric. The desired FT.COMMISSION.TYPE or

FT.CHARGE.TYPE record could be attached for each of the activity. IDs with reference 999 being
reserved for taking ad-hoc charges. The User may define the frequency at which a particular charge is
to be collected in this table. A definition as to whether the charge is to be amortized or not, and if to be
amortized the period of amortization and the frequency of amortization could also be defined in this
table. Apart from the above, a decision as to whether the particular charge has to be distributed
among all participants including the agent or only to the agent is defined in this table. A screenshot of
the record is appended below.

Page 100 of 151
Syndicated Loans
SL.CHARGE.ACTIVITY – Grouping of charges
SL.CHARGE
This application enables the user to actually take charges for a facility or a drawing. The @ID of this
application is the Facility/Loan ID – Date – Running serial number.
In order to facilitate ease of input, the user may input the mnemonic of the FACILITY or the
SL.LOANS in the ID of SL.CHARGES. The system would concatenate the date and serial number to
the reference number fetched for the relevant mnemonic.
On input of a CHG.ACTIVITY, the pre-defined charges for the activity are defaulted by the system into
this table, and the user may introduce additional charge(s) or delete one or more defaults. On
committing the record, calculations are done and the charge amounts are populated. Apart from the
charge amounts, the share that is due to each participant is arrived at and written to appropriate fields
if the value in the APPLY.TO.ALL is YES.

Page 101 of 151
Syndicated Loans
The following screenshot shows typical inputs in SL.CHARGE.
SL.CHARGE – Facility level charge 1

Page 102 of 151
Syndicated Loans
SL.CHARGE – Share of participants to charge 1

Page 103 of 151
Syndicated Loans
SL.CHARGE – Collection of charge 2
SL.CHARGE – Share of participants to charge 2

Page 104 of 151
Syndicated Loans
Based on the information available in the above file, SL.CHARGE.BALANCES (internal file) is built.
This file will hold the aggregate charge taken, share of individual participant, information as to the
amount of charge to be amortized and the period of amortization. Amortization of a charge would
happen only to the extent of the T24 Bank’s share of the charge. The balance file would also hold the
next amortization date, on which the proportionate charge is dripped into the P&L.
There would be as many charge balance records as number of charges taken. For frequency based
charges there would be as many records as number of frequencies to a single charge.
The screenshot of the SL.CHARGE.BALANCES for the charges as taken above is appended here.
SL.CHARGE.BALANCES

Page 105 of 151
Syndicated Loans
Repayment schedules
The manner in which the borrower is to repay for amounts drawn under the Facility would depend on
the type of credit line (Revolving or Non-revolving) offered.
Revolving Facility
In the case of revolving facility, the draw maturity date (the date until when the borrower has access to
funds) will be equal to the maturity date (date by which the amounts are to be repaid in full) of the
facility. In practice a revolving facility could be of two types:
• Facility with a single review date (without schedules) – Here, the facility is granted for a specific
period and is reviewed at the end of the period. After such review the facility could be either be
extended (with or without enhancement) or called back.
• Facility that reduces in a phased manner (with schedules) – Here, the facility is granted for a
certain period and is reduced in a phased manner so that by the end of the validity period, the
entire amount is repaid. For example a revolving facility for 10M could be granted on 01 Jan 2005
with an expiry date of 31 Dec 2010 with reductions as follows:
Date Reduction Available

01 Jan 2005 Nil 10M
31 Dec 2006 30% 7M
31 Dec 2008 30% 4M
31 Dec 2010 40% Nil
* Amount of facility that could be drawn (permitted outstanding).
In such case the FACILITY record should be defined as follows:
FACILITY – Phased reduction of limit

Page 106 of 151
Syndicated Loans
In case of a single review date, the user may define for 100% reduction at the maturity date. Should
there be no input in this set of fields, the system would schedule a single cancellation for 100% of the
amount on the maturity date.
Based on such definition an internal file SL.EXPOSURE.LEVEL would be built showing details of
permitted exposure levels for various time periods.
SL.EXPOSURE.LEVEL – Revolving Facility
When drawings are effected, the UTIL.AMOUNT field in the SL.EXPOSURE.LEVEL file is updated
for relevant time periods. This file is used to restrict drawings within the desired levels based on
phased reduction contemplated in the FACILITY.
When SL.ROLLOVER is used, permitted drawing levels in SL.EXPOSURE.LEVEL are checked in

order to validate the transaction. In order to understand this let us take the following example:
A Facility has been granted for 10M on 01 Jan 2005 with reductions as contemplated in the earlier
example. Assume that two loans exist under the Facility – L1 for 4M and L2 for 6M, both amounts
expressed in Facility currency equivalent (loans could exist in any currency). The current maturity date
in L1 and L2 are 31 Oct 06. When an attempt is made to rollover L1 for a further period of 6 months
(till 31 Mar 07), this would go through. If it is attempted to rollover L2 for a similar period, the error
message would get produced as the projected exposure level on 31 Dec 06 is exceeded. The
borrower may in this case split L2 into two loans of 3M each, with maturity date as 31 Dec 06 and 31
Mar 07.

Page 107 of 151
Syndicated Loans
Non-revolving Facility
A typical non-revolving facility would have three stages, viz., Drawdown period (when the borrower
has access to funds), moratorium period (when drawdown is complete but redemption of principal is
yet to commence) and repayment period (when the amounts borrowed are repaid). The SL module
provides functionality to define repayment schedules at two levels:
• Facility level – Where drawings under the Facility (in Facility currency) are aggregated and a
single repayment schedule is defined at the top level. Though repayment schedule is defined at
the facility level, drawings are to be repaid in their respective deal currency. The aggregate of
repayments expressed in facility currency equivalent would be checked if drawings are live in
more than one currency.
The borrower may also handle rollovers in such a manner that the existing drawings are rolled
over for a lesser amount which would result in repayment of the difference.
If repayment schedules are defined at facility level, the internal file SL.EXPOSURE.LEVEL
would be built in a similar manner as for revolving facility and validated while transacting
rollovers during the repayment period.
• Drawing level – Where repayment schedules are defined for each drawing. In this case,
repayments are to be effected in the currency of the drawing. It would be possible to define
different frequencies for interest repayment and principal redemption. It would also be possible
to define Annuity type schedules for a drawing.
Repayment schedules may be defined for different time blocks at different frequencies. In case facility
level repayment schedules are defined, the interest repayment dates for individual drawings will be
defined in the respective drawing record only.
The extent of principal that is to be redeemed, expressed in facility currency equivalent is defined in
the application SL.REPAYMENT.SCHEDULES. In the example provided below it could be seen that
the frequency of redemption is quarterly for the first two time blocks (M03) and monthly for the third
block (M01). The extent of principal that is to be repaid (expressed in facility currency) for every time
block is defined by the user and the system would calculate and depict the instalment amount per
redemption.

Page 108 of 151
Syndicated Loans
SL.REPAYMENT.SCHEDULES – Facility level schedules
Based on such definition, an SL.EXPOSURE.LEVEL record is written by the system in order to

validate rollovers during the repayment period. This record captures information in a similar format to
that of a revolving facility. It could be observed that 300,000 which is the value of one instalment is
scheduled for reduction every three months until 01 Dec 2008, and 600,000 effective 01 Jan 2009 etc.,
as defined in the repayment schedules.

Page 109 of 151
Syndicated Loans
SL.EXPOSURE.LEVEL – Non-revolving facility
Repayment schedules are allowed either at facility level or drawing level. Even if repayment schedules
are defined for a single drawing under a facility, facility level schedules are prohibited.
A typical example of a drawing level schedule is given below.

Page 110 of 151
Syndicated Loans
SL.REPAYMENT.SCHEDULES – Drawing level schedules
It would be possible to define several time blocks and provide an extent of principal redemption for
each block with different frequencies. Additionally, for a loan level schedule the user will also be able
to define the interest redemption dates till maturity of the loan. Functionality to define more than one
interest payment frequency is also supported. In the above illustration it could be observed that
interest is serviced monthly from 31 Jul 2005 and quarterly effective 31 Jul 2008.
Fixing interest rates

The table SL.RATE.FIX could be used to record the rates quoted by several banks on a given day. In
a syndicate, there could be a stipulation that the average rate quoted by N number of named banks
would be the applicable interest rate for any drawings under the facility. In such scenario, the Agent
needs to record the rates quoted by the named banks and update this rate onto T24.

Page 111 of 151
Syndicated Loans
SL.RATE.FIX – Fixing of interest rates
The system would support three types of decisions to take the Highest Rate, Lowest Rate and the
Mean Rate. The manner in which the average (applicable) rate would be drawn from the rates quoted
may differ and hence it would be also be possible to attach a routine to perform such calculation.
After calculation of effective (applicable) rate, the user may optionally update the relevant
BASIC.INTEREST table with such rate.
Diary of events
The application SL.DIARY is provided in order to record diary events for a facility. The diary events
may be recorded at the Facility level, Tranche level or drawing level. Specific covenants applicable to
a single (or group) participants or a particular borrower may also be defined.
Before inputting SL.DIARY it would be essential to define SL.DIARY.CODES, which would contain the
list of standard diary activities / covenants.

Page 112 of 151
Syndicated Loans
SL.DIARY.CODES
The ID of SL.DIARY may either be a valid Facility reference or a Facility reference plus tranche code
(that exists under the facility) or an SL loan reference. Additional diary events applicable to a specific
borrower or participant may also be captured. Diary events may have a standard frequency or be
defined with adhoc dates.
• If diary events are to be recorded at the Facility level, the ID of the Facility is used. For an ID with
mere Facility reference, events are applicable to the Facility customer and all participants under
the Facility.
• If certain events are applicable to a specific borrower, the ID to be used is Facility reference plus
the customer number, who has to be any allowed customer (across tranches).
• If certain events are applicable to a specific participant, the ID to be used is Facility reference plus
the participant number, who has to be a valid participant.
• On similar lines covenants may be defined at Tranche level or Tranche-Customer or Tranche-
Participant. The additional validation in this case is that the borrower has to be an allowed
customer under the respective tranche or the participant should have participated in the tranche.
These validations are applicable at the time of definition of diary events and not thereafter.
• Covenants may also be defined at Loan level or Loan-Participant level. The additional validation in
this case is that the participant should have contributed a share in the drawing. These validations
are applicable at the time of definition of diary events and not thereafter.
It would be possible to record events with standard frequency as well as adhoc events. Every diary
event can be assigned to a specific department officer in order to facilitate follow-up and reporting.
On authorisation, system-cycled dates for every event are populated for the specified time period. It
would be possible for the user to record the outcome of each event and action taken / to be taken (in
case of non-compliance) for every event date.

Page 113 of 151
Syndicated Loans
SL.DIARY – Facility level covenants
In this application, several diary actions could be listed under the same level (say Facility level) by
multi-valuing DIARY.CODE and each action may have its own distinct frequency.
Guarantees and Standby letters of credit
When a Guarantee (MD.DEAL) is to be linked to Syndicated Loans (SL), it is essential that the first
input in the Guarantees is the SL reference. This input is to be done in the field SL.REF.TRANCHE.
This field accepts a Facility ID appended with the Tranche reference under which the guarantee is
issued. For any guarantee to be issued under a facility, the status in the FACILITY should be ‘CUR’
and AVBL.MARKER set to ‘YES’. The referred Tranche should be live at the time of input. When the
MD.DEAL is input, the system defaults the SL.PRODUCT.TYPE from the FACILITY. The valid
values into this field are SC or GT, representing Standby Credit or Guarantee. For a Guarantee to be
linked to SL, this definition of Product in the FACILITY is mandatory. Such a link is permitted only for
issue of Guarantee (CA) types.

Page 114 of 151
Syndicated Loans
MD.DEAL – SL reference & Product type
Input of the CUSTOMER of the MD.DEAL triggers validations to ensure whether the customer is
defined in ALLOWED.CUST in the referred FACILITY. The currency of the Deal is validated against
the permitted currency or the restricted currency of the Tranche, as the case may be. When the deal
amount is input, the system validates the same against the Tranche and defaults all the participants of
the Facility along with their respective share as defined in the FACILITY. The validation for the
amount of the Guarantee Deal is also carried out against SL.ACCOUNT.BALANCES,
SL.FACI.BALANCES, SL.FACI.PART.BALANCES and the SL.EXPOSURE.LEVEL, ensuring there is
no breach of the upper limit up to which the guarantee may be issued. When a guarantee is input in a
currency different from that of the facility, a base currency rate may be defined using the field
BASE.CCY.CONV. This ensures the rate at which the facility is to be impacted in such scenarios and
its limit lines. The same rate is used for restoration of facility amount if it is revolving in nature.
The value date of the guarantee deal has to be equal or greater than the value date of the tranche and
shall always be less than the tranche end date. The maturity date of the deal has to be less than or
equal to the maturity date of the facility.
The limit line of the FACILITY shall always be defaulted into the MD.DEAL. This limit line defaulted
from the FACILITY shall be used to update all the utilization of the guarantee under the facility.
MD.DEAL – Limit reference
In the case of commission relating to guarantee and its tax component, the system shall default the
same from the referred FACILITY. This happens from the field INTEREST.RATE and the tax
component from INT.TAX.KEY. This shall however take place only if the guarantee’s deal currency
and that of the facility is one of the same. If otherwise, the default shall happen from SL.FACI.RATES,
if defined. Any rate defaulted may be overridden. Likewise the CSN.FREQUENCY in MD shall be
defaulted from INT.DUE.DATE field in FACILITY.

Page 115 of 151
Syndicated Loans
FACILITY – Interest & commission due dates
This default shall supersede any default conditions set up from the MD Gen/Group conditions. The
option to default the commission rates for various participants through SL.PART.RATES is not
available when linked to the MD module.
MD.DEAL – CSN details

Page 116 of 151
Syndicated Loans
While CSN.PAYMENT.TYPE defaults to END type of commission, in the event of participation

ASSET.LIAB.NETTING shall always default to YES, ensuring that consol entry is raised only for the
NET.PRIN.AMOUNT. It is worthwhile to note that unlike SL.LOANS, in the case of guarantee deals,
T24 bank’s share is held in NET.PRIN.AMOUNT and not as a separate participant multi-value set.
MD.DEAL – Participant shares
In the case of participated deals, the file MD.PART.CSN.BALANCES holds the share of all the
participants as long as the commission is of END type. The extant logic of participants share of
commissions being held in an internal account shall continue. So SPLIT.COMMISSION shall always
default to YES.
If charges are to be collected in such linked deals, it has to be done from the SL module. This ensures
that the share of commission is recovered vis-à-vis the share of participation in the guarantee deal.
But if such deals are only for T24 bank’s component without participation, then it may be collected
from MD.DEAL.
No movement of principal is permitted in deals when linked to syndication. When a deal is linked to SL,
the share of participants is distributed in proportion to that in FACILITY. But prior to authorizing the
deal, the share of the participation may be amended. Once authorized these cannot be changed. The
update in the SL related files viz., SL.ACCOUNT.BALANCES and FACILITY happens at INAU and
so are the limit updates.
The validations shall be built in line with SL.LOANS for TR.MAX.LOANS, TR.MAX.CURRENCY,
DD.MULT.AMOUNT, DD.MIN.AMOUNT and DD.MAX.AMOUNT.
Balance files
The following Balance files form part of the module. Each balance file is meant for a specific purpose
and information at various levels are held in different combinations.

Page 117 of 151
Syndicated Loans
SL.ACCOUNT.BALANCES
Contains the tranche wise outstanding amounts; under a facility, broken down into each
participant share. This file is used to validate the loan amount in SL.LOANS or
SL.ROLLOVER vis a vis commitment available amount under the respective tranche.
SL.ROLLOVER.BALANCES
When SL.ROLLOVER is authorised, this file is updated with the payment and receipt details
currency wise resulting out of such rollover. It also contains an indicator as to the nature of
operation used in SL.ROLLOVER, i.e., Rollover / Merger / Split. The share of each
participant, currency-wise, is also stored here and is used mainly for netting delivery.
SL.PRESYN.BALANCES
The extent of underwriting done by T24 bank for each FACILITY is held here along with the
currency and the consolidation key for the deal.
SL.LOAN.BALANCES
Details of currency, original amount, principal movements and their effective dates, interest
rate, interest for the current period etc., are held in this file for every live SL.LOANS ID.
Amounts are stored in deal currency equivalent. Closing balance alone is held in both deal
currency and facility currency equivalent.
SL.LOAN.ACCR.DETAILS
Details of accruals of the loan (T24 bank portion only) are held for period between value and
maturity date. Amounts are stored in deal currency.
SL.FACI.ACCR.DETAILS
Similar to SL.LOAN.ACCR.DETAILS, this file holds information for a FACILITY.
SL.OD.DUES
This file is written only when LIQUIDATION.MODE in the FACILITY or SL.LOANS is
INTERNAL. On the scheduled date, the commitment fee due (Facility) or interest and principal
dues (Loans) are written to this file. Within each asset type, the aggregate dues and the share
of each participant in the due are written. One record for every scheduled date, concatenated
with the FACILITY or SL.LOANS reference is written.
SL.OD.PART
Participant level information of the overdues is held in this file. Whereas SL.OD.DUES hold
information at FACILITY or SL.LOANS level, SL.OD.PART holds information at participant
level.

Page 118 of 151
Syndicated Loans
SL.FACI.BALANCES
This file is created with details of the currency, initial amount of the FACILITY and Tranches.
This is updated when drawings are made using SL.LOANS or SL.ROLLOVER. For every
tranche start date and end date the tranche level information is updated. Commitment fee
details like amount, rate and effective dates are also held. A principal movement to the
FACILITY transacted through SL.BUY.SELL also updates this file.
SL.FACI.PART.BALANCES
Facility balances are held at participant level in this file. The ID of this file is keyed by the
FACILITY reference plus the customer reference of the Participant.
For T24 bank alone, this file contains the amount accrued for the current period.
SL.CHARGE.BALANCES
This file would contain the details of charges taken as well as ones to be taken in future
(scheduled). It will also hold the un-amortised portion of the charges wherever amortisation
has been set to YES while taking charges.
Such information is held for FACILITY and SL.LOANS.
Internal files
The following internal files form part of the module.
SL.TR.LOANS
Lists out the ID’s of the live SL.LOANS drawn under each tranche. This file is updated when
fresh loans are drawn, on maturity of loans and on transacting SL.ROLLOVER. The @ID of
this file is the PRE.SYNDICATION @ID plus the unique tranche code assigned.
SL.ROLLOVER.LOANS
This file contains details of old and new loans under the ID of SL.ROLLOVER. When
SL.ROLLOVER is used, this file is updated with details of reference numbers, currency and
amount of the old loans (rolled-over, merged or split) and similar details for the new loans
emanating out of the transaction.
It also contains an indicator as to the nature of operation used in SL.ROLLOVER i.e.
Rollover / Merger / Split.
SL.ROLLOVER.EOD.LIST
For every date, this file would contain the ID’s of SL.ROLLOVER that are to be processed for
system date.

Page 119 of 151
Syndicated Loans
SL.MNEMONIC
This contains the Mnemonic used for each FACILITY or SL.LOANS.
SL.LOAN.SCHEDULES
For every SL.LOANS ID concatenated with date, this file contains the details of schedule type
and amount that is to be processed. Should there be any charge scheduled for that date,
relevant details are also held here.
SL.LOAN.SCHEDULES.PAST
Contains the loan schedules that have already been processed.
SL.LOAN.MATURITY
Under every date, this file holds the details of SL.LOANS that are scheduled for maturity. This
file would contain details of past as well as future dates.
SL.INTEREST.KEY
Contains the list of SL.LOANS that are assigned to a specific BASIC.INTEREST key.
SL.LOAN.EOD.LIST
For every date, this file would contain the ID’s of SL.LOANS that are to be processed for
system date.
SL.FACILITY.MATURITY
Similar to SL.LOAN.MATURITY, this contains the details of FACILITY records that are
scheduled for maturity (including past and future dates).

Page 120 of 151
Syndicated Loans
SL.FACILITY.LOANS
File that lists out the ID’s of the live SL.LOANS drawn under a particular FACILITY record.
SL.FACI.TR.ST.LIST
On every tranche start date, updates are required in the FACILITY record and respective balances
files to reflect the commitment available amount. This file lists out under each date the tranches that
require update.
SL.FACI.TR.END.LIST
On every tranche end date, updates are required in the FACILITY record and respective
balances files to reflect the commitment available amount. Also, accounting entries are
required to be raised on the tranche end date if an undrawn balance is not flagged for carry
forward on expiry of tranche. This file lists under each date the tranches that require
update/accounting
SL.FACI.TR.IDS
This file contains details of unique tranche codes forming part of each FACILITY record.
@ID of this file is the PRE.SYNDICATION.FILE reference and all FACILITY records and
tranche codes within each FACILITY record are listed.
SL.FACI.SCHEDULES
Similar to SL.LOAN.SCHEDULES, this contains the schedule type and amount that is to be
processed for every FACILITY record. Should there be any charge scheduled for that date,
relevant details are also held here.
SL.FACI.SCHEDULES.PAST
Similar to SL.LOAN.SCHEDULES.PAST this contains the details of past schedules (already
processed) for a FACILITY.
SL.FACI.REPAY.SCHED.LIST
When SL.EXPOSURE.LEVEL is built the scheduled dates for reduction is held in this file. On
such scheduled date, the amount scheduled for cancellation as held in
SL.EXPOSURE.LEVEL is processed.
SL.FACI.LOAN.CUST.AMT
In order to support group lending, it would be possible to define a FACILITY with allowed
and reserved amounts pertaining to each borrower under a tranche. This file contains for each
allowed customer (under a tranche) the allowed and reserved amounts defined in the
FACILITY. This file is updated when the specific borrower draws under the tranche.

Page 121 of 151
Syndicated Loans
SL.FACI.LOAN.CURRENCY
It would be possible to define the maximum number of currencies in which live loans are to
exist under each tranche in a FACILITY. This file contains details of live SL.LOANS
references and the deal currency of the drawing under each tranche code within a FACILITY.
SL.FACI.EOD.LIST
Similar to SL.LOAN.EOD.LIST contains details for FACILITY record.
SL.FACI.DELIVERY.LIST
This file will hold the list of FACILITY or SL.LOANS @ID for which delivery messages are
scheduled for a future date. The @ID of this file is the actual date on which the messages are
to be produced.
SL.EXPOSURE.LEVEL
A revolving facility could contain stipulations for phased reduction of the facility amount. For a
non-revolving facility, the user may define SL.REPAYMENT.SCHEDULES at the facility level. In
either case the SL.EXPOSURE.LEVEL file is built containing details of specific dates on
which amounts are to be repaid (non-revolving) / scheduled for reduction (revolving). When
drawings are made under the facility, the amount of loan would be updated in the relevant time
period in this file. Also, use of SL.ROLLOVER will result in update of utilised amounts for
relevant time blocks.
When loans are drawn or rolled over, the contemplated exposure level is checked while
validating the transaction.
SL.ENT.TODAY
When a live FACILITY or SL.LOANS is visited by the user and changes made, this file is
updated in order to process static changes, if any.
SL.CUSTOMER
This file contains details of live FACILITY records pertaining to each customer.
SL.CUSTOMER.LOANS
This file contains details of live SL.LOANS records pertaining to each customer.
RE.CONSOL.SL
The list of live contracts under each consolidation key is held in this file.
RE.CONSOL.SL.SEQU
Sequential file for RE.CONSOL.SL

Page 122 of 151
Syndicated Loans
Accounting process
Initial Set-Up
Grouping parameters in SL module is controlled from three different templates, viz.,
PRE.SYNDICATION.FILE, FACILITY and SL.LOANS. The following screenshot details the
application name and local file names for these templates in order to be included in
CONSOLIDATE.COND.
CONSOLIDATE.COND – Definition for SL (1)
The details of key application and key general file names to be used in CONSOLIDATE.COND are
given below.

Page 123 of 151
Syndicated Loans
CONSOLIDATE.COND – Definition for SL …cont/
Accounting entries
The following paragraphs briefly outline the accounting entries raised by the module in different
scenarios.
Parameter decisions
Like in any other application’s parameter file, the categories to which interest accruals are to be taken
are specified in SL.PARAMETER. The respective category codes to which underwriting commission,
profit/loss on sale of facility or loan, skimming profit/loss are to be taken are defined here.
The frequency at which accruals are to be performed is also mentioned in the same table.
Accrual Methods
Accruals in Syndicated Loans have an option of linking to EB.ACCRUAL.PARAM where user can
set INCLUDE.START.DATE & LAST.DAY.INCLUSIVE based on which accruals will be happening.
If not defined, the system will include the start date and exclude the last date. The
EB.ACCRUAL.PARAM Id can be attached to either Facility or Loans or both. Further fields

Page 124 of 151
Syndicated Loans
PRIN.INCR.ADJ & PRIN.DECR.ADJ are introduced to determine from when the Principal Increase
or decrease should be effective.
The different accrual methods are linked to FACILITY & SL.LOANS using the field ACCRUAL.ID
that is present on both files and links to the specified EB.ACCRUAL.PARAM
EB.ACCRUAL.PARAM can also be used to make a distinction between actual principal increase
and decrease in loans under the syndicate, and increase/decrease in loan amounts that arise out of
existing loans being traded between participants under the syndicate. The effective date of the former
type of transaction could be different from the effective date of buy/sell transactions, for purposes of
interest calculation. To achieve this, the field MOVEMENT.TYPE should be set to ‘BS’ and the number
of calendar days to be added/deducted from the value date of the buy/sell transaction in order to arrive
at the effective date, needs to be input in the MOVEMENT.ADJ field. In case these fields are not used,
the effective date will be arrived at using the settings in PRIN.INCR.ADJ and PRIN.DECR.ADJ
fields. If there are separate settings for buy/sell transactions in EB.ACCRUAL.PARAM, this will be
reflected in the fields MVT.TYPE and MVT.AMT in the SL.LOAN.PART.BALANCES file, when such
transactions take place.
Rounding Options
The field ROUNDING.RULE allows different rounding options at contract level to enable the user to link
to predefined rounding rules. These would be used for rounding underwriting fee, facility fee, interest
and charge amount calculations apart from rounding rules specified at currency level. When no
rounding rule is specified (in the contract) by the user then the rounding rule given at currency level
takes precedence.
The ROUNDING.RULE field links to the system file EB.ROUNDING.RULE and is present on
SL.PARAMETER, PRE.SYNDICATION.FILE, FACILITY, SL.LOANS and SL.CHARGE.
Since rounding rules are somewhat rare and set by the individual bank rather than show a specific
example for SL the user should check the options in the System Tables user Guide for more detail.
Underwriting
A decision as to whether accounting entries are required for own underwriting may be taken in
SL.PARAMETER in field ACCT.UNDERWRITING. Should this field be flagged to YES, entries with
ASSET.TYPE ‘CONTUW’ are raised for the bank’s own portion that is underwritten. This could be
used to disclose the contingent liability on account of underwriting for reporting purposes.
If ACCT.UNDERWRITING has value NO or Null, no accounting happens for underwriting.
Entries for underwriting commission are passed if CREATE.FACILITY is flagged in

PRE.SYNDICATION.FILE.

Page 125 of 151
Syndicated Loans
Grant of facility, drawings & rollovers

In order to understand the manner of accounting for the above, let us consider the following example.
In each case accounting is handled only for own bank’s share in the syndicate. Also is assumed that
T24 bank is acting as Agent in the syndicate, and is also a participant.
Mandate Currency / amount – USD 10,000,000
Participants
T24 bank (Agent) - USD 4,000,000
BANK A – (Participant) - USD 3,000,000
BANK B – (Participant) - USD 3,000,000
SIGN ASSET.TYPE AMT FILE* REMARKS
* SE = STMT.ENTRY, CE = CATEG.ENRY and RE = RE.CONSOL.SPEC.ENTRY
(a) Grant of Facility
CR LIVECMT 4,000,000 RE Creation of contingent liability
(b) Drawings made for 1,000,000
DR LIVECMT 400,000 RE Liquidation of facility (own share)
DR LIVEDB 400,000 SE Own bank’s portion of drawings

DR Nostro * 300,000 SE Bank A’s share of disbursement
DR Nostro * 300,000 SE Bank B’s share of disbursement
CR Drawdown a./c 1,000,000 SE Amount disbursed to borrower
* Entries would be raised to the first account in the currency of the deal for the respective participant.
Should there be no account in the currency of the deal for the participant, the NOSTRO.ACCOUNT
for the currency is used.
(c) Maturity of drawings – Liquidation mode is AUTOMATIC

Page 126 of 151
Syndicated Loans
CR LIVECMT 400,000 RE Re-instatement of commitment if Facility is

REVOLVING
CR LIVEDB 400,000 SE Own bank’s portion of drawings

CR Nostro 300,000 SE Bank A’s share
CR Nostro 300,000 SE Bank B’s share
DR PR.Liq a/c 1,000,000 SE Amount repaid by borrower
(d) Maturity of drawings – Liquidation mode is INTERNAL *
CR LIVECMT 400,000 RE Re-instatement of commitment if Facility is

REVOLVING
CR LIVEDB 400,000 RE Own bank’s portion of drawings

DR Pr. Liq a/c 400,000 SE Own bank’s portion of drawings
* In this case the aggregate dues of 1,000,000 would be written to SL.OD.DUES and the dues
to individual participants to SL.OD.PART. The Agent would pay the participants only after sighting
credit in its Nostro.
(e) Repayment to participants (thru SL.OD.SETTLE)
DR PAY.ACCOUNT 1,000,000 SE Repayment by borrower

CR Nostro 300,000 SE Bank A’s share
CR Nostro 300,000 SE Bank B’s share
CR PR Liq a/c 400,000 SE Own share
(f) Liquidation of commitment fee (Aggregate fee is 1,000) – AUTOMATIC
DR Fee.Liq.A/c 1,000 SE Aggregate fee payable

CR Nostro 300 SE Bank A’s share
CR Nostro 300 SE Bank B’s share
CR Nostro Asset type 400 RE Own Share
(g) Liquidation of commitment fee (Aggregate fee is 1,000) – INTERNAL

Page 127 of 151
Syndicated Loans
DR Fee Liq A/c 400 SE Own Share

CR Accrual Asset type 400 RE Own Share
(h) Repayment of commitment fee to participants (thru SL.OD.SETTLE)
DR PAY.ACCOUNT 1,000 SE Repayment by borrower

CR Nostro 300 SE Bank A’s share
CR Nostro 300 SE Bank B’s share
CR Fee Liq a/c 400 SE Own share
(i) Interest liquidation 1,000 with Withholding tax of 100
Liquidation mode is AUTOMATIC
DR Int.Liq A/c 1,000 SE Aggregate interest

CR Nostro for Bank 300 SE A’s share of interest
CR Nostro for Bank B 300 SE B’s share of interest
CR Accrual Asset type 400 RE Own share of interest
DR WHT Certificate a/c 40 SE (Own share only)

CR WHT Reserve a/c 40 SE (Own share only)
(j) Interest liquidation 1,000 with Withholding tax of 100
Liquidation mode is INTERNAL
DR Int.Liq A/c 400 SE Aggregate interest

DR WHT Certificate a/c 40 SE (Own share only)

CR WHT Reserve a/c 40 SE (Own share only)
(k) Interest liquidation of 1,000 with Interest tax of 100 – AUTOMATIC
DR Int.Liq A/c 1,000 SE Aggregate interest

DR Int.Liq A/c 100 SE Aggregate tax

Page 128 of 151
Syndicated Loans
CR Nostro (A) 330 SE A’s share of interest plus tax

CR Nostro (B) 330 SE B’s share of interest plus tax
CR Tax Internal a/c * 40 SE Own share of tax
(l) Interest liquidation of 1,000 with Interest tax of 100 – INTERNAL
DR Int.Liq A/c 400 SE Own share of interest

DR Int.Liq A/c 40 SE Own share of tax
CR Tax Internal A/c 400 SE Own share
(m) Repayment of Interest to participants (through SL.OD.SETTLE) is handled in the same

manner as for commitment fee.
(n) Drawing of discounted loan for 1,000,000 (aggregate interest is 10,000)
DR LIVEDB 400,000 SE Own share

DR Nostro 297,000 SE A’s share less interest due
DR Nostro 297,000 SE B’s share less interest due
CR Asset type * 4,000 RE Own share of interest (CAP)
CR Drawdown a/c 990,000 SE Net amount disbursed
* Asset type of category defined in SL.PARAMETER
(o) Amortisation of discounted interest (say 100 a month)
DR Asset Type (above) 100 RE Proportionate amount

CR PL category 100 CE Proportionate amount
(p) Buying a contingent portion of the syndicate (the T24 bank is the Buyer) of 1,000,000 for a
premium of 1,000. Premium is amortised.
DR Asset type in SLP 1,000 RE Amortisation amount

CR Nostro ** 1,000 SE Premium paid
* Asset type of PL category mentioned in SL.PARAMETER. If decision is not to amortise, the debit will

Page 129 of 151
Syndicated Loans
be to the same PL category.
** Either the first current account in the currency of the deal of the participant or the
NOSTRO.ACCOUNT for the currency would be used.
CR LIVECMT 1,000,000 RE Value of contingent buy
(q) Selling a contingent portion of the syndicate (the T24 bank is the Seller) of 1,000,000 for a
discount (loss) of 1,000. Premium is amortised.
DR Asset type in SLP * 1,000 RE Amortisation amount

CR Nostro 1,000 SE Discount paid
* Asset type of PL category mentioned in SL.PARAMETER. If decision is not to amortise, the debit will
be to the same PL category.
DR LIVECMT 1,000,000 Re Value of contingent sale
(r) Buying and selling contingent/non-contingent portion (Between participants, the T24 bank is
the Agent)
In this case no accounting entry is raised. Respective participant balances files are updated.
(s) Buying a non-contingent portion of the syndicate (the T24 bank is the Buyer). Loan value is
1,000,000 for a premium of 1,000
DR LIVEDB 1,000,00 RE Value of loan purchased

CR Nostro 1,001,000 SE Consideration paid
(t) Selling a non-contingent portion of the syndicate (the T24 bank is the Seller). Loan value is
1,000,000 for a premium of 1,000
CR LIVEDB 1,000,000 RE Value of loan sold

CR Asset type in SLP 1,000 RE Amortisation of premium
DR Nostro 1,001,000
Accounting where the T24 bank acts as a mere Participant is described below.

Page 130 of 151
Syndicated Loans
(u) Entry into the syndicate buying a contingent portion of 1,000,000 for a premium of 10,000.
Premium is booked to P&L.
DR PL category * 10,000 SE * In Parameter

CR BS.Settle.A/c 10,000 SE Premium paid
CR LIVECMT 1,000,000 RE Value of commitment
* PL Category code mentioned in SL.PARAMETER
(v) Entry into the syndicate buying a non-contingent portion of 1,000,000 for a premium of 10,000.
Premium is amortised.
In this case, first a contingent portion of 1,000,000 should be bought with no premium/discount. Then,
a SL.LOAN should be input giving the consideration and premium details.
DR LIVEDB 1,000,000 RE Value of loan bought

CR BS.Settle.A/c 1,001,000 RE Consideration paid
(w) Rest of the accounting entries for mere participant is on the same lines as for Agent, with no
amounts for the T24 bank.
Close of Business Processing

To enable SOD processing the field PROCESS.AT.SOD can be set in the following tables.
• FACILITY
• SL.LOANS
• SL.ROLLOVER.LOANS
This field can hold either ‘YES’ or NULL in FACILITY. If it is set to ‘YES’ all the events will be
processed in start of day and if it is NULL it will be processed during end of day.

Page 131 of 151
Syndicated Loans
Field setting in FACILITY file
Once the Facility is authorised value in field PROCESS.AT.SOD cannot be changed.
When a drawdown is made against the facility, in SL.LOANS field PROCESS.AT.SOD will be
defaulted from facility.
Field set in SL.LOANS.FILE

Page 132 of 151
Syndicated Loans
Similarly when a SL.LOAN is rolled over, the value of this field will be updated in file
SL.ROLLOVER.LOANS. In addition the value will be defaulted in child loan as well.
Field in SL.ROLLOVER.LOANS
The screenshot of child loan shown below, where the field PROCESS.AT.SOD has been defaulted
from parent loan.
Field defaulted from parent

Page 133 of 151
Syndicated Loans
SOD processing is applicable only for the following listed events.

• Repayment of loans
• Collection of interest and fee.
• Rollovers, mergers and splits
Recovery of charges through SL.CHARGE.ACTIVITY and SL.CHARGE
• Limit update
• Message generation.
However, the following will be done only during COB though PROCESS.AT.SOD is set:
• Tranche maturity
• Facility maturity
Exposure update in SL.EXPOSURE.LEVEL
Amortisation of charges input in SL.CHARGE
Limit
The SL module uses standard calls to the LIMIT module. Whenever a facility or a drawing is input,
after all validation checks have been performed the system will check with the LIMIT module to see if
an approved limit is in place for that product type. If none exists, a default one will be created. Checks
will be made against the expiry date, available amounts, global or sub-product limits according to the
unique limit structure of the bank.
The limit impact would be only to the extent of the T24 Bank’s exposure in the facility and drawing.
Limit calls would also be triggered from the SL.ROLLOVER and SL.BUY.SELL applications. The limit
call from SL.BUY.SELL would be triggered only if T24 Bank is involved in the transaction.
Reports
The following reports have been attached to the BATCH in SL. These reports may also be generated
online by launching respective enquiries.
SL.IMMINENT.MAT.RPT
This report would list out the FACILITY ID’s that are to mature within the number of days defined in
SL.PARAMETER in field DAYS.PRIOR.MAT.RPT.

Page 134 of 151
Syndicated Loans
ENQ SL.IMMINENT.MAT.RPT – Maturing facility records
SL.DRAW.IMMINENT.MAT
This report would list out the SL.LOANS ID’s that are to mature within the number of days defined in
SL.PARAMETER in field DAYS.PRIOR.MAT.RPT. The drawings pertaining to Agent or Agent cum
Participant Facilities only would find a place in this report.
ENQ SL.DRAW.IMMNENT.MAT – Maturing drawings Agent & Participant
SL.DRAW.IMM.MAT.PARTICIPANT
This report would list out the SL.LOANS ID’s that are to mature within the number of days defined in
SL.PARAMETER in field DAYS.PRIOR.MAT.RPT. The drawings pertaining to Mere Participant
Facilities only would find a place in this report.
ENQ SL.DRAW.IMMNENT.MAT – Maturing drawings for mere participant

Page 135 of 151
Syndicated Loans
Enquiries
The following enquiries have been made available in the SL module.
SL.LOAN.DETAILS
Selection criteria:
Facility ID – Mandatory
Tranche Code – Optional
Currency – Optional
This enquiry displays details of drawings under the facility.
ENQ SL.LOAN.DETAILS – Loans under a facility
Further details of the drawings would be displayed by clicking on the drawing ID showing details of
principal movements if any.

Page 136 of 151
Syndicated Loans
ENQ SL.LOAN.DETAILS – Principal movements
A further drill down is available on the same enquiry to display details of an individual participant’s
contribution to such principal movement. This could be achieved by clicking on the desired date for
which details are sought.
ENQ SL.LOAN.DETAILS – Participant shares

Page 137 of 151
Syndicated Loans
SL.PARTICIPANT
Selection Criteria is the ID of the Facility and the Participant, both mandatory. This enquiry would
display all contributions under a respective facility by a selected participant, loan-wise. The amounts
contributed in drawing currency as well as Facility currency are displayed amongst other details.
ENQ SL.PARTICIPANT – Tranche wise Loans under a facility
A drilldown on the drawing ID would provide details of contribution made date wise.
ENQ SL.PARTICIPANT – Date wise movements

Page 138 of 151
Syndicated Loans
SL.PART.SHARES
The mandatory selection criterion is the ID of the Facility. If contribution by a particular participant in all
drawings under the facility is required, the user may add the desired participant also to the selection
criteria. This enquiry displays the share of individual participant in drawing as well as facility currency
equivalent in all drawdowns.
ENQ SL.PART.SHARES – Participant’s share in loans drawn under a facility
Further drilldown on the amount will display the share of all participants in the selected drawing.
ENQ SL.PART.SHAERS – Participant share in selected drawing
SL.DIARY
The selection criteria in this enquiry are flexible to accommodate fetching data at various levels,
depending on need. If launched at the facility level, this would display the diary events sorted by event,
date and account officer. The completion status of each event and action taken / to be taken.

Page 139 of 151
Syndicated Loans
ENQ SL.DIARY – Diary event at Facility level
SL.ROLLOVER
The enquiry SL.ROLLOVER would display details of rolled over loans showing particulars of existing
and rolled over currency, amount and reference ID.
ENQ SL.ROLLOVER – Details of rolled over loans
SL.BUY.SELL
This enquiry details the particulars of buy/sell transactions that have taken place under the selected
Facility. Details of buy/sell participants, type of sale, consideration etc., are provided.
ENQ SL.BUY.SELL – Details of buy/sell transactions under a facility

Page 140 of 151
Syndicated Loans
SL.BANK.FACILITY
This enquiry could be launched to ascertain the syndicates in which a particular bank has participated.
The enquiry would show the details of the aggregate value of the syndicate as well as the selected
bank’s participation.
ENQ SL.BANK.FACILITY – Details of participation by a bank across facilities
SL.BALANCES
The enquiry SL.BALANCES would show the drawings made against each facility under a selected
pre-syndication reference.
ENQ SL.BALANCES – List of drawings under a presyn reference

Page 141 of 151
Syndicated Loans
SLL.BALANCES.SUM
The selection criterion for the SLL.BALANCE.SUM ENQUIRY is solely the id of the SL.LOANS
contract. Information in the Enquiry is based on event dates past, present and future and includes
schedule information from SL.REPAYMENT.SCHEDULES. Interest is calculated for future periods
based on the current data for information purposes that may change as and when new rates are
applied.
Enquiry SLL.BALANCES.SUM
Further details for the schedule date can be obtained by clicking the ‘Schedule Details’ button, which
will drilldown to the SLL.PART.DETAILS ENQUIRY.

Page 142 of 151
Syndicated Loans
SLL.PART.DETAILS
This Enquiry is usually invoked by selecting a schedule date from the display of the
SLL.BALANCES.SUM ENQUIRY. To run it alone you will need to supply both the SL.LOANS id and
the schedule date in YYYYMMDD format.
Enquiry SLL.PART.DETAILS
Outward Delivery
This portion contains information on the aspects of delivery that applies to the SL module. The
delivery of messages is achieved through ‘Soft Delivery’ mechanism, which is dealt with in detail in
this chapter.
Summary of messages generated

The following messages are generated in the circumstances defined.

Page 143 of 151
Syndicated Loans
Summary of Messages:
Type of Deal/operation Message Recipients

Grant of New Facility 649 Participants & Borrower
Amendment to a Facility 649 Participants & Borrower
Reversal/Cancellation of a Facility 692 Participants & Borrower
Notice of Commitment fee due 645 Borrower
Advice of Commitment fee collection 690 Participants & Borrower
Notice of Loan Draw down 643 Participants
Actual Loan Draw Down 643 Borrower
Amendment to a Loan 643 Participants & Borrower
Reversal/Cancellation of a Loan 692 Participants & Borrower
Notice of Interest Payment 691 Borrower
Confirmation of Interest/Principal payment 646 Participants & Borrower
Notice of Charge due 691 Borrower
Advice of Charge collection 690 Participants & Borrower
EB.ACTIVITY
The generation of messages is activity based. The activities are defined in the EB.ACTIVITY file. The
ID of the record is the application ID followed by a four-digit code separated by a hyphen. Eg. SL-2102.
The four digits are derived as given below:
The first digit indicates the application for which the activity has been generated. Currently for T24
release G13.1.0 the system would recognize three values for the first digit viz. 1 =
PRE.SYNDICATION.FILE 2 = FACILITY 3 = SL.LOAN, with a scope for addition in future releases.
The second digit indicates the operation done under each application. Currently the system would
recognize six values viz. 0-OTHERS, 1-INPUT, 2-AMENDMENT, 3-NOTICE, 4-CONFIRMATION and
5-REVERSAL, with a scope for future addition.
The third digit indicates the components for which the message is being generated viz. Principal or
Interest or Commitment fee etc. Currently the system would recognize five values viz. 0-OTHERS, 1-
PRINCIPAL, 2-COMMITMENT FEE, 3-INTEREST, and 4-CHARGES with a scope for future addition.
The fourth digit indicates the recipient of the message. At present the system would recognize three
values viz. 1-PARTICIPANT ONLY, 2-PARTICIPANT and BORROWER and 3-BORROWER ONLY
with a scope of addition in future.

Page 144 of 151
Syndicated Loans
For example – Grant of a new FACILITY would generate the activity SL-2102, meaning 2-FACILITY,
1-INPUT, 0-OTHERS (since it involves all components) and 2-PARTICIPANT and BORROWER.
A typical EB.ACTIVITY record for SL-2102 is appended below
EB.ACTIVITY
EB.ADVICES
The messages required to be generated for each EB.ACTIVITY is defined in this file. The ID of this
file is the same as EB.ACTIVITY file. For example, for the activity SL-2102, the messages that the
user desires to generate are defined in this file. The mapping key to be used, the print format to be
used (for print messages) and the EB.MESSAGE.CLASS file to be looked at are defined in this file. A
typical EB.ADVICES file for SL-2102 is appended below.

Page 145 of 151
Syndicated Loans
EB.ADVICES
In order to cater to the Tags 28 and 29 in Syndication messages, a table

SL.PART.DELIVERY.DTLS has been introduced. This enables capturing information relating to
Account Officer, Department, Phone, Telex and Fax numbers. The Id of this table would be that of
Customer.
Parameter definitions
The SL.PARAMETER (system) record has to be set up properly for triggering soft delivery. A typical
set up would be as given below:

Page 146 of 151
Syndicated Loans
SL.PARAMETER – Delivery related fields
Here the SL.MSG.CLASS is the class identified by the program internally for the activity generated by
the system. EB.MSG.CLASS is the message class attached to a particular message in the
EB.ADVICES file. On determination of the EB.ACTIVITY code, the system would identify the
EB.ADVICES to be triggered. From there the messages to be generated are picked up along with the
EB.MSG.CLASS record. Then the EB.MSG.CLASS is compared with the parameter settings and the
appropriate SL.MSG.CLASS is identified by the program and used.
In order to cater to MT644, a new SL.MSG.CLASS has been introduced, LOAN.RATE.CHANGES.

This message is supported from SL.LOANS, SL.ROLLOVER and SL.RATES.PART.
The following table would give the messages that would be generated from individual applications
along with the respective DE.MAPPING / DE.FORMAT.PRINT / DE.FORMAT.SWIFT records that
would be used.

Page 147 of 151
Syndicated Loans
FACILITY
Delivery Messages – FACILITY
S. MSG.CLASS EB.A DE. DE. DFP DFS

No DVIC
MSG MAPPING
ES
1 GRANT NEW SL- 649 649.SL.1 649.1.1.GB(B) 649.1.1
FACILITY 2102
(ADVICEPART)
GRANT NEW
649.2.1.GB(P)
FACILITY.BORR
(ADVICEBORR)
2 ADVICE FEE SL- 690 690.SL.3 690.1.1.GB(B) 690.1.1

SCHEDULES 2122
(ADVICEPART)
ADVICE FEE
690.2.1.GB (P)
SCHEDULES.BORR
(ADVICEBORR)
3 NOTICE FEE SL- 645 645.SL.1 645.2.1.GB (B) 645.1.1
PAYMENT.BORR 2323
(ADVICEBORR)
4 FACI AMENDMENTS SL- 649 649.SL.1 649.3.1.GB(B) 649.1.1
2202
(ADVICEPART)
FACI
AMENDMENTS.BORR
649.4.1.GB(P)
(ADVICEBORR)
5 FACILITY REVERSAL SL- 692 692.SL.1 692.1.1GB(P&B) 692.1.1
2502
(ADVICEPART)
FACILITY
REVERSAL.BORR
(ADVICEBORR)

Page 148 of 151
Syndicated Loans
SL.LOANS
Delivery Messages – SL.LOANS
6 LOAN DD.BORR SL-3102 643 643.SL.1 643.2.1.GB(B) 643.1.1

(ADVICEPART)
7 NOTICE OF LOAN DD SL-3302 643 643.SL.1 643.1.1GB(P) 643.1.1
(ADVICEPART)
8 LOAN AMENDMENTS SL-3202 643 643.SL.1 643.3.1.GB(B&P 643.1.1

)
(ADVICEPART)
LOAN AMENDMENTS.BORR
(ADVICEBORR)
9 ADVICE RATE AND AMOUNT SL-3231 644 644.SL.1 644.1.1.GB 644.1.1
FIXING
(LOAN.RATE.CHANGE)
10 LOAN REVERSAL SL-3502 692 692.SL.2 692.3.1.GB(P&B 692.1.1
)
(ADVICEPART)
LOAN REVERSAL.BORR
(ADVICEBORR)
11 NOTICE OF INT SL-3332 691 691.SL.2 691.1.1.GB 691.1.1
PAYMENT.BORR
(ADVICEBORR)
12 CONFIRM INT PAYMENT SL-3432 646 690.SL.2 690.3.1.GB (B) 690.1.1
(ADVICEPART)
CONFIRM INT 690.4.1.GB (P)
PAYMENT.BORR
(ADVICEBORR)

Page 149 of 151
Syndicated Loans
SL.CHARGE
Delivery Messages – SL.CHARGE
12 ADVICE OF CHG SL- 690 690.SL.1 690.5.1.GB(B) 690.1.1

2143(P)
(ADVICEPART)
SL-
ADVICE OF 690.6.1.GB(P)
3143(L)
CHG.BORR
(ADVICEBORR)
13 NOTICE OF SL-2343 691 691.SL.1 691.2.1.GB 691.1.1
CHG.BORR
SL-3343
(ADVICEBORR)
SL.BUY.SELL
Delivery Messages – SL.BUY.SELL
14 TRANCHE SL-2202 649 649.SL.2 649.5.1.GB(B) 649.1.1

AMENDMENTS
(PARTICIPATION)
649.6.1.GB(P)
TRANCHE
AMENDMENTS.BOR
R
(PAYMENT)
SL.REPAYMENT.SCHEDULES
Delivery Messages – SL.REPAYMENT.SCHEDULES
15 NOTICE OF INT SL-3332 691 691.SL.2 691.1.1.GB 691.1.1

PAYMENT.BORR
(ADVICEBORR)
16 CONFIRM INT SL-3432 646 690.SL.2 690.3.1.GB (B) 690.1.1
PAYMENT
(ADVICEPART)
690.4.1.GB (P)
CONFIRM INT
PAYMENT.BORR
(ADVICEBORR)

Page 150 of 151
Syndicated Loans
SL.ROLLOVER
Delivery Messages – SL.ROLLOVER
17 LOAN DD SL- 643 634.SL.2 643.4.1.GB 643.1.1

3002
(ADVICEPART)
18 ADVICE RATE AND AMOUNT SL- 644 644.SL.1 644.1.1.GB 644.1.1
FIXING 3231
(LOAN.RATE.CHANGE)
Delivery Messages - SL.RATES.PART:
19 ADVICE RATE AND AMOUNT SL- 644 644.SL.1 644.1.1.GB 644.1.1

FIXING 3231
(LOAN.RATE.CHANGE)

Page 151 of 151

Syndicated Loans

Uploaded by

Copyright:

Available Formats

You might also like

Syndicated Loans

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Syndicated Loans

Uploaded by

Copyright:

Available Formats

TEMENOS T24

Copyright 2005 TEMENOS Holdings NV. All rights reserved.

TEMENOS T24 User Guide

TEMENOS T24 User Guide

TEMENOS T24 User Guide

SL.BUY.SELL .................................................................................................................................. 140

TEMENOS T24 User Guide

The system handles the workflow in the following stages:

TEMENOS T24 User Guide

TEMENOS T24 User Guide

• Handle purchase or sale of participations in the loan or facility.

TEMENOS T24 User Guide

Type Days Description

TEMENOS T24 User Guide

A similar requirement for commitment fee is also handled.

Application of Interest Rate

TEMENOS T24 User Guide

Special Basis Interest

Special interest calculation basis can be used in SL with following features

TEMENOS T24 User Guide

Application of interest rate

Drawing in Facility Currency

Drawing in an Optional Currency

TEMENOS T24 User Guide

(d) COMMITMENT AVAIL/UNAVAIL - Commitment fee is based on the commitment available

Facility Amount 10,000,000

TEMENOS T24 User Guide

- Start Date Jan 01, 2002

Fee Basis – ORIGINAL (O)

Base Amount for Calculation 10,000,000

Fee Basis – UNUSED (U)

Base Amount for Calculation 10,000,000

After Drawing 1 for 3,000,000 on Jan 10, 2002.

Base Amount – Period (Jan 01 – Jan 10) 10,000,000

TEMENOS T24 User Guide

Fee Basis – TRANCHE UNUSED (TU)

Drawing 1 for 3,000,000 Jan 10, 2002 against Tranche 001

TEMENOS T24 User Guide

Base Amount - Period (Jan 10 – July 01) 3,000,000

TEMENOS T24 User Guide

Charges & Fees

Rollover, Merger and Split

TEMENOS T24 User Guide

TEMENOS T24 User Guide

TEMENOS T24 User Guide

SL.BUY.SELL - Buying and Selling operations

Reducing Limit & Repayment Schedules

TEMENOS T24 User Guide

Such a check is performed at the time of each drawing.

TEMENOS T24 User Guide

TEMENOS T24 User Guide

TEMENOS T24 User Guide

TEMENOS T24 User Guide

TEMENOS T24 User Guide

SL.CHARGE.ACTIVITY – Grouping of charges

While taking charges through SL.CHARGE, the ID of SL.CHARGE.ACTIVITY only needs to be

TEMENOS T24 User Guide

Collection of Multiple Fees in SL

TEMENOS T24 User Guide