Loan Syndication is a lending process in which a group of lenders provide loan to one or more borrowers. Each lender in the syndicate contributes part of the loan amount, and they all share in the lending risk. The loan is governed by a single Loan Agreement. However, each Lender of the Syndicated Loan maintains a separate claim on and bears the credit risk for the respective portion of the loan provided by it.
OBCLPM is capable of managing Pre Mandate, Post-Mandate, Closing stages of Loan Syndication Origination and Drawdown.
OBCLPM has the below processes:
This chapter contains the following sections:
Pre-Mandate Lead Arranger Process manages the beginning of the Syndication process until the execution of the Mandate Letter. This process can manage initial analysis of Borrower requirement, Solution Proposal and negotiation with Borrower, Inclusion of Co-Arrangers before or after the Solution Proposal, Obtaining Credit Approvals, Preparation of Mandate Documents and its execution. Upon Completion of Pre-mandate process, the details will be handed over for the creation of respective Post Mandate Process.
The process flow for Pre-Mandate Lead Arranger undergoes goes the below stages:
Pre-Mandate process starts with the biding from the Borrower or the Bank approaching the Borrower User capture the basic details such as Borrower Information, Borrower Related Parties, Syndication Requirement, Expected Collateral value. Borrower and Borrower Related parties will be to Borrower on-boarding team to start the Borrower evaluation process. If more than one Borrower and related parties are there, then that many process will be initiated.
User will wait for the response from Borrower domain to get the initial analysis on the parties. Based on the response user will take the appropriate decision to proceed. Up on proceeding with the syndication application will create a task with internal legal department to prepare or review the draft Confidentiality Agreement (NDA).
Internal legal teams prepare and share the draft Confidentiality Agreement (NDA).
Up on receipt of draft NDA from the legal with their respective comment, user will send the NDA to the Borrower for review after the Scrutiny. I f any amendments required, then the document will be sent back to the Legal team for modification. User will be able to send multiple advises at this stage with attaching the different versions of the NDA.
Borrower reviews and sign the NDA if the Borrower is agreeable with the format else sends the borrower comments to the Legal for modification of the draft. (Execution of the documents takes place outside the system and Loans will only track the status of the Document).
Once the NDA is signed, the user initiates quick evaluation on the customer with the Credit System and waits for the evaluation results or user himself performs the evaluation in credit system. User will be able view the status of the evaluation and will receive the result of the evaluation.
Upon reviewing the customer evaluation, the user will take a decision to proceed with the syndication and draft a solution. Also the user will take a decision to proceed with the arrangers or not. If the Arranger Invitation DS is filled at least with one arranger then the application will trigger a different flow, in which the user will invite the arrangers to participate and help in providing the solution.
This decision will be reviewed by the approver. Approver can either approve the solution or cancel the application or proceed with the application in two ways one with co-Arranger and one without Co-arranger. If the process is without co-arrangers, then after the solution firming approval, user can send the solution to the borrower or modify the solution or cancel the application.
If any arranger details are captured other than the home bank, then user will be able to follow this process. Send invitation to the Arrangers captured in the Arranger Invitation data segment. Advice will be sent to the Arrangers along with Confidentiality Agreement (NDA). User will wait for the response from arrangers. User will be able to track the acceptance response and the status of NDA execution. Also will be able to send the reminders.
For the arrangers which are shown interest in the syndication and returned the signed NDA, the user will be able to send the additional details about the Borrower. Advice will be sent to the Arrangers with attachments. (Inter stage advises). For arrangers which are responded with not interested can mark as rejected. User will be able to capture more arrangers if required other than the invitations send earlier.
All the above activities performed in the previous stage will be reviewed by the Approver and every action will be processed after the approval at this stage. User proceed to prepare the Proposal in coordination with the Arrangers (These discussions are outside the system and only proposal is captured in the system). After the solution firming approval, user can send the solution to the borrower and arrangers or modify the solution or cancel the application.
User can send the solution to the Borrower and arrangers and wait for the Borrower response.
In this user can follow up with the Borrower if no response. Advice will be sent at this stage (Inter stage). Modify the proposal based on the comments from the Borrower. Cancel the application if the Borrower is not agreeing with the Proposal. Advises will be sent to borrower and arrangers. Proceed with the next phase Pre-Mandate once the proposal is finalized with the Borrower. Advises will be sent to borrower and arrangers.
Once the proposal is agreed with the Borrower, the user can proceed with the syndication with co-arrangers if not included already. This stage will be occurred only if the user decided to proceed with co-arrangers and the co-arrangers are not selected before the solution proposal. This flow is not applicable if the arrangers are already finalized.
Capture the details of the Arrangers and send the invitations to the selected arrangers. Advice to be sent to the Arrangers along with Confidentiality Agreement (NDA). Up on sending the invites, user will come back to the Arranger invite stage to track the responses from the arrangers. User will be able to track the acceptance response and the status of NDA execution. Also will be able to send the reminders.
For the arrangers which are shown interest in the syndication and returned the signed NDA, the user should be able to send the additional details about the Borrower. Advice to be sent to the Arrangers with attachments. (Inter stage advises). For arrangers which are responded with not interested should mark as rejected. User will be able to capture more arrangers if required other than the invitations send earlier.
Once all the arrangers signed the NDA, user will be able to proceed to the next stage or user will be able to take decision to proceed with the responded arrangers. User will intimate the Arrangers regarding the finalization of arrangers.
All the above activities performed in the previous stage will be reviewed by the Approver and every action will be processed after the approval at this stage.
At this stage user will conduct the arranger meeting and capture the proposed amount from each arranger for their participation. Meeting will be outside the application.
User will also finalize the syndication party roles of each arranger.
Upon discussion with the arrangers, user will finalize the allocation for each arrangers and send for the approval.
If the Co-arrangers are finalised before Customer acceptance of the solution, then the process will starts from this stage. Also if the Lead Bank is proceeding without any co-arranger, then the process will starts from this stage.
If the approver is not agreeable to the allocation, the user will redo the allocation.
Upon finalization of the allocation user will initiate the credit approval for self Arranged portion if the syndication arrangement is underwriting.
If the Credit approval is not received for the self-allotted amount then the user should go back and redo the allocation. Once the Credit approval is obtained, finalized allocation information will be sent to the Arrangers. Advises will be sent to the Arrangers.
If the self arrangement is on Best effort basis, then no credit approval is required and the user will be able to initiate the preparation of the mandate document with the help of internal legal upon finalization of the allocation.
Internal legal prepares the Mandate documents and sends to the user for review.
User do the scrutiny of the documents and sends back to the legal if any modification required. Else the user send the documents to the arrangers for their review. Advice will be sent to the Arrangers.
User will wait for Arrangers comments on the mandate documents and if the arrangers are not agreed with the mandate documents, then the user will send the mandate documents to the internal legal for modification. Once the Arrangers agree on the mandate documents, then the mandate documents will be send to the Borrower for the review. Advice will be sent to the Borrower.
If the Borrower is not acceptable with the mandate documents the same will be sent to the internal legal for amendments along with the comments from the Borrower. Cancel the application if Borrower is not interested. If the Borrower agrees with the mandate documents then the mandate documents will be sent to all the parties for execution. Advises will be sent to all the parties.
User will track the status of the execution of mandate documents from all the parties. User will send the fully executed documents to all the parties. Advice will be sent. With this the pre-mandate stage will be closed.
The basic registration details for Pre-Mandate Lead Arranger for a prospective borrower can be initiated using this Initiation Screen, provided the user has the required access rights.
How to reach here:
Corporate Lending > Operations > Syndication > Pre Mandate Arranger
How to initiate a Pre Mandate Arranger:
Basic Details
Click Initiate to begin the process.
Pre-Mandate Co-Arranger Process manages the beginning of the Syndication process until the execution of the Mandate Letter along with the Lead Arranger. This process can manage initial analysis of Borrower requirement, Solution Proposal and negotiation with Borrower, Obtaining Credit Approvals, Preparation of Mandate Documents and its execution. Upon Completion of Pre-mandate process, the details will be handed over for the creation of respective Post Mandate Process.
The process flow for Pre-Mandate Co-Arranger undergoes goes the below stages:
Pre-Mandate Co-Arranger starts with the receipt of the invitation from the Lead Bank, to join the arrangement of the Syndication. User capture the basic details such as Borrower Information, Borrower Related Parties, Syndication Requirement, Expected Collateral value. Borrower and Borrower Related parties will be to Borrower on-boarding team to start the Borrower evaluation process. If more than one Borrower and related parties are there, then that many process will be initiated.
User will wait for the response from Borrower domain to get the initial analysis on the parties. Based on the response user will take the appropriate decision to proceed. If the decision is to proceed with the Syndication, user signs the NDA and send the acceptance confirmation to the Lead Bank. Else confirm the rejection. Advice will be sent along with attachments. User waits for the additional details to receive from the Lead Bank.
Up on receipt of the additional details, the user initiates quick evaluation on the customer with the Credit System and waits for the evaluation results or user himself perform the evaluation in credit system. User will be able view the status of the evaluation and should receive the result of the evaluation.
Upon reviewing the customer evaluation, the user will take a decision to proceed with the syndication or not.
This decision will be reviewed by the approver. Approver can either approve the solution or cancel the application or proceed with the application. Advice will be sent to the Lead bank confirming the outcome.
If the Syndication Solution has already agreed by the Borrower with the Lead Bank, then the user will move to the Commitment Confirmation Stage. If the solution is not finalized, then the user will finalize the solution in discussion with the Lead Bank.
Approver can approve the agreed Syndication Solution or reject. Once the solution finalized and agreed by the Borrower, then the user will move to the Commitment Confirmation Stage
At this stage user will up on discussion with the Lead Bank and other Co-Arrangers if any, user will finalize the commitment allocation for the Co-Arranger and send for the approval.
If the approver is not agreeable to the allocation, the user should redo the allocation. Upon finalization of the allocation user will initiate the credit approval for self Arranged portion if the syndication arrangement is underwriting.
If the Credit approval is not received for the self-allotted amount then the user should go back and redo the allocation. Once the Credit approval is obtained the user will be able to communicate the Proposed Arranged amount to the Lead Bank and move to the next stage to wait for the confirmation from the Lead Bank. Advice will be sent to the Lead Bank.
If the self arrangement is on Best effort basis, then no credit approval is required and the user will be able to communicate the Proposed Arranged amount to the Lead Bank and move to the next stage to wait for the confirmation from the Lead Bank. Advice will be sent to the Lead Bank.
If no credit approval then cancel the application if the arrangement is underwriting.
User reviews the Arrangement allocation from the Lead Bank. If there is any difference in the allocation then the user will redo the allocation else move to the next stage to wait for the Mandate Docs. If no allocation cancel the application. User will also finalize the syndication roles of each arranger.
User receives the Draft mandate Docs from the Lead bank and send the same for the review of the internal legal.
Internal Legal Team reviews the documents and provides the comments.
Up on receipt of the Legal comments, user sends the comments to the Lead Bank. Advice will be sent to the Lead bank along with attachments.
Up on receipt of execution version of the Docs, then the user will be able to move to the signing stage if there is no comments on the documents. If the Docs are not agreed by the Borrower then cancel the application.
User execute the documents and send the signed copy to the Lead Bank for consolidation. Advice will be sent along with attachments.
User will track the receipt of fully executed documents.
With this the pre-mandate stage will be closed.
The basic registration details for Pre-Mandate Co-Arranger for a prospective borrower can be initiated using this Initiation Screen, provided the user has the required access rights.
How to reach here:
Corporate Lending > Operations > Syndication > Pre-Mandate Co-Arranger
How to initiate a Post Mandate Agent:
Basic Details
Click Initiate to begin the process.
Post Mandate Agent process manages agency related activities of the Agent post assuming the role of an Agent after the execution of the Mandate Letter. This process manages the Preparation of Transaction Documents, Co-ordination with Arrangers and participant Banks, KYC of all the syndication parties, Execution of Transaction Documents and Condition Precedent Satisfaction. Upon completion of the Origination process, the details will be handed over to Operations Enrichment Process for the creation of Facility and Tranches in OBCL.
The process flow for Post Mandate Agent undergoes goes the below stages:
The data available during the Pre Mandates will be automatically fed in or captured manually. The user captures the additional data required. User captures the details and send the details to the Legal Counsel for the preparation of the Transaction Docs.
The user reviews the draft transaction docs. If any amendments required, it is send back to the legal counsel. If no amendments required, then send it to arrangers for review.
After the arrangers review, the arranger comments are reviewed. If any amendments required, it is send back to the legal counsel. If no amendments required, then send it to Borrower for review.
After the Borrower’s review, the Borrower comments are reviewed. If any amendments required, it is send back to the legal counsel. If no amendments required, then final allocation of lenders is checked.
After the docs is finalized, final allocation of lenders, KYC and all the internal departmental approvals are checked for completion. If the allocation is not finalized, send back to legal with the finalized allocation. If KYC completion and internal department’s approvals are pending, then user will wait until these are completed. Completion of KYC and internal departmental approvals are outside OBCLPM.
After the KYC of all parties, all the internal departmental approvals and final allocation of lenders are in place, send Transaction docs to all the parties for execution. The user will track the execution status of all the docs for all the parties. After sending executed docs to all the parties, data is handed off to the operations team for creation of Facility and Tranche.
User will wait for the Condition Precedent to be satisfied, after satisfaction send it for approval.
If Condition Precedent Satisfaction is satisfied. The user will approve it and then with this Post Mandate Agent process will end.
Initiating Post Mandate Agent
The basic registration details for Post Mandate Agent for a prospective borrower can be initiated using this Initiation Screen, provided the user has the required access rights.
How to reach here:
Corporate Lending > Operations > Syndication > Post Mandate Agent
How to initiate a Post Mandate Agent:
Basic Details
Click Initiate to begin the process.
Post Mandate Arranger process helps the Bank to manage role of an Arranger post executing the Mandate Letter. This process involves the Syndication Invitation to the Participant Banks, Participation Allocation, Risk Review for self-participation, KYC, Internal Approvals, Execution of Transaction Docs and Condition Precedent confirmation. Upon completion of origination process, the details will be handed over to the Operations Enrichment Process accordingly.
The process flow for Post Mandate Arranger undergoes goes the below stages:
The data available during the Pre Mandates will be automatically fed in or captured manually.
Movement of this stage will create two parallel processes for the user and which will be worked separately.
Participant Allocation can be processed in two ways:
For Proceed without Additional Participants, User will move to the Participant Allocation stage after entry.
Process flow for Proceed with Additional Participants undergoes goes the below stages:
User will capture the details of the Participants and send the invitations to the selected Participants. After sending the invites, user will track the responses from the Participants and the status of NDA execution.
User will send the additional details about the Borrower to the Participants, who has shown interest in the Syndication and returned the signed NDA. For Participants, who has responded with not interested should be marked as rejected. If required, user should capture more Participants, other than the ones invited earlier.
Once all the Participants sign the NDA, user will decide to proceed to next stage or to proceed with the responded Participants. Finalization of Participants will be intimated to the Participants. User will then move to the Participant Allocation stage. User will capture the proposed amount from each Participant for their participation. After discussion with the Participants, user will finalize the allocation for each Participant and send for the approval.
The approver will review the allocation. If the approver does not agree to the allocation, the user should re-allocate. On finalization of the allocation user will initiate the credit approval request for self-participant portion with CFPM. If there is self-participation for the Arranger, ensure there is self-participant commitment allocation given.
The credit response will be reviewed. If the Credit approval request is rejected for the self-allotted amount, then the user should re-allocate. Once the Credit approval is obtained, the user will proceed to the next stage after sending the notice to the Participants. If there is no self-participation, then no credit approval is required and the user will to move to the next stage after sending the notice to the Participants.
The user will track the execution status of all the docs and check if the same bank is managing the Agency role and if there is self-participation for arranger. If there is no self-participation, then the process will end. If the arranger is self-participant and playing the role of the Agent, then move to Receive Condition Precedent Satisfaction. If the arranger is self-participant and the Agent is different, then hand over the data to the Operations Enrichment and move to Receive Condition Precedent Satisfaction.
User will wait for the Condition Precedent to be satisfied, after satisfaction send it for approval. After Condition Precedent Satisfaction is satisfied. The user will approve it and then with this Post Mandate Arranger process will end.
Transaction Documents Review
This will be managed as a parallel process. Process flow for Transaction Documents Review undergoes goes the below stages:
User will receive the Draft mandate Docs from the Agent and will send it to internal legal for review.
The docs is reviewed by the internal legal and the response is given to the RM
The legal comments are reviewed. If any amendments required, then the user will send it to Agent to make the changes. On receipt of execution version of the Docs, with no further comments on the documents, the user should move to the KYC and Internal Approvals stage.
Initiating Post Mandate Arranger
The basic registration details for Post Mandate Arranger for a prospective borrower can be initiated using this Initiation Screen, provided the user has the required access rights.
How to reach here:
Corporate Lending > Operations > Syndication > Post Mandate Arranger
How to initiate a Post Mandate Arranger:
Basic Details
Click Initiate to begin the process.
Participant Process handles Syndication Facility Origination process for Bank as Participant. This includes Syndication Invitation from the Arranger, Due diligence of the Borrower, KYC, Risk review, Participation decision and Transaction document execution. Upon completion of the Origination process, the application will hand over the details to Operations Enrichment Process for the Operation user to enrich and handover to OBCL.
The process flow for Participant process undergoes goes the below stages:
The user captures the borrower information and related party details manually. Borrower and Borrower Related parties details should be send to the Borrower on-boarding team to start the Borrower evaluation process.
The user reviews the borrower information and related party details. After review of the Borrower details, the user will decide to proceed with the Participation or to terminate the process. To proceed with the participation, user will confirm the interest to the Arranger along with the signed NDA.
The user will have to wait for the additional details about the facility including Terms Sheet. After review of the details received, user will propose the intended participation amount for approval.
The intended participation amount is reviewed for approval. If no amendments required, then the data is send for credit approval. If any amendments required, then send back to Review Additional Details. The user initiates credit request with CFPM.
The credit response is reviewed and the user will decide to proceed with the Participation or to terminate the process. To participate, user sends confirmation to the arranger.
User waits for the allocation confirmation from the arranger. If the allocation is not done, then the application will be cancelled or user will proceed to receive the draft transaction docs from the agent. If the user accepts the allocation, then the agent is informed.
The transaction docs are reviewed and send to the internal legal team for their review.
The docs is reviewed by the internal legal. Legal provides the comments to the Business user for their review.
The legal comments are reviewed and communicated to the Agent. If no amendments required, then move to KYC and Internal Approvals. If any amendments required, then it is communicated to the agent and wait for the amended documents.
KYC of all parties are checked to be complete. In addition, all the internal departmental approvals are checked to be in place. If KYC completion and internal department’s approvals are pending, then user will wait until these are completed. Completion of KYC and internal departmental approvals are outside OBCLPM. If the KYC of all parties and all the internal departmental approvals are in place, then proceed for Document execution.
The executed docs is tracked. If the participant bank is managing the Agency role, then the data will be handed off to OBCL. If the participant bank is not an agent, then the data is handed off to the operations team for creation of Facility and Tranche. Post data hand off if the Condition Precedent is not satisfied, then it is moved to Review Condition Precedent Satisfaction.
User will wait for the Condition Precedent to be satisfied. After satisfaction, the user will approve it and then with this participant process will end.
Initiating Participant Process
The basic registration details for Participant Process for a prospective borrower can be initiated using this Initiation Screen, provided the user has the required access rights.
How to reach here:
Corporate Lending > Operations > Syndication > Participant Process
How to initiate a Participant Process:
Basic Details
Click Initiate to begin the process.
Participant Transfer is the process of allocating the Participants Commitment between the existing Participants or with a new Participants. This process also supports the removal of an existing Participant by allocating their commitment to another existing or new Participant. This process helps the user to amend the Participants commitment based on the amended Facility Agreement.
Initiating Participant Transfer Process
Participant Transfer Process can be initiated by giving the basic registration details in the Initiation Screen, provided the user has the required access rights.
How to reach here:
Corporate Lending > Operations > Syndication > Participant Transfer
Basic Details
The process flow for Participant Transfer Process undergoes the below stages:
User will be able to make the input at the entry stage. User can view the details about the existing Tranche Participants and will be able to amend the respective data segments to amend the Parties or Participants Commitments or related details.
Below Data Segments will be used in this stage.
Parties
Existing Parties details will be defaulted and user will be able to add or remove Participants in the Parties data segment, however user should not add or remove any parties other than the Participants
Tranche Details
Existing details of the Tranche will be defaulted and user should not make any changes to the Tranche Details.
Additional Tranche Details
Existing details of the Tranche will be defaulted and user should not make any changes to the this data segment.
Lenders Commitment
Participant share of the existing Tranche will default in this data segment and user can amend the details to reflect change in Participant commitment.
Entity Details
Details of the existing Participants will default in this data segment and user can make changes if any Participant is included or removed.
Settlement Details
Details of the existing Participants will default in this data segment and user can make changes if any Participant is included or removed.
User will be able to review and approve all the details captured in the previous stage. If any corrections to be done in the data captured in Entry stage, user will be able to send back the application to the Entry stage for correction. Upon approving the application, OBCLPM will hand over all the information to OBCL. With this hand off OBCLPM will be able to amend the existing Tranche in OBCL with the details captured in the Entry stage.
Below Data Segments will be used in this stage as read-only and User will be able to review all the details in the data segment and will not be able to edit any details.
Operations Enrichment is the process to capture the details available during the Syndication Origination stages as a continuation of any of the Post Mandate process or as standalone process to handover the details for the creation of Syndicated Deal in the back office. Capturing of details can occur in the following ways:
The process flow for Operations undergoes goes the below stages:
The data available during the Syndication Origination will be automatically fed in or captured manually. In addition, the user reviews the prefilled data and amends it if required.
The user captures the additional data required for the back office.
The loan details are reviewed for approval. If pre-filled data is not edited and no amendments required, then the data will be handed off to OBCL.
If any of the pre-filled data is edited, then send for Exceptional Approval.
If any amendments required, then send back to Entry. Post hand off if the Condition Precedent is not satisfied, then it is moved to Review Condition Precedent Satisfaction.
User will wait for the Condition Precedent to be satisfied, after satisfaction send it for approval.
If Condition Precedent Satisfaction is satisfied. The user will approve it and then with this Operations Enrichment process will end.
Initiating Operations Enrichment
The basic registration details for Operations Enrichment for a prospective borrower can be initiated using this Initiation Screen, provided the user has the required access rights.
How to reach here:
Corporate Lending > Operations > Syndication > Operations Enrichment
How to initiate an Operations Enrichment:
Basic Details
Agency Drawdown is a process in which the borrower will submit the Drawdown notice to Agent Bank to arrange the funds on a certain date. Agent bank will perform its due diligence on the Drawdown Notice and if satisfied then proceeds will be send to Borrower on the given date.
The process flow for Drawdown Agency undergoes the below stages:
In this stage, Agent bank will capture the funding requirement and perform the due diligence on the Drawdown notice received in form of PDF from the customer. Agent bank will also verify if all the Condition precedent along with Further Condition precedents and Drawdown Conditions has been satisfied.
All the data gathered in the previous stage will be checked and verified. If data input is incorrect, then the verifier can reject the application or send it back for correction. If the verifier is satisfied with all the data, then he can proceed. While submitting the stage all the notice configured will be generated and send to respective parties. In case of any discrepancy, bank will revert to borrower for more details or will move to next stage.
If agent is also participating as one of the lenders to the deal and has to cover exposure, then for the same amount treasury ticket to be booked. Treasury reference number and rate will be captured.
Under this stage, bank can configure additional data segment to capture more data which are required.
Bank will send out the notices to all the lenders to arrange the funds on a Drawdown date. In addition, tracking for the lenders reply slip, if not received then reminder to be send.
Agent will reconcile each lenders share in Drawdown shares. If funds not received then reminders would be sent.
If the funds from any lender is not received or sighted, then Intra-day Risk approvals for funds will be arranged. User will request for intraday approval, if any lender has not sent the funds on DD date.
In case of Drawdown, a Sanction check is performed on borrower. If any hits are found, then compliance approval can be obtained.
Post all the above step application will land into the final approval. After the approvals, cash will be remitted to the Borrower, before currency cut off.
Initiating Agency Drawdown
The basic registration details for Agency Drawdown for a prospective borrower can be initiated using this Initiation Screen, provided the user has the required access rights.
How to reach here:
Corporate Lending > Operations > Syndication > Agency Drawdown
How to initiate an Agency Drawdown:
Basic Details
Participant Drawdown is a non-agency process in which the agent will submit the Drawdown notice to Lender to arrange the funds on a certain date. Lender bank will perform due diligence on the drawdown notice and if satisfied, then proceed will be send to agent on the given date.
The process flow for Participant Drawdown undergoes goes the below stages:
Lender will capture the funding requirement and perform the due diligence on the Drawdown notice received in form of PDF from the agent. In addition, lender will also verify if all the Condition precedent is satisfied. Further Condition precedent and Drawdown Condition has been satisfied.
Data gathered in the previous stage along with facility and tranches booked in system will be checked and verified. If data input is not correct, then the verifier can reject the application or send it back for correction. If the verifier is satisfied with all the data, then lender will sign the reply slip and send to agent via fax or an email. In case of any discrepancy, lender will revert to agent for more details or will move to next stage.
As Lender bank is also lending to the deal and has to cover exposure, then for the same amount treasury ticket to be booked. Treasury reference number and rate will be captured.
Under this stage, bank can configure additional data segment which are required.
In case of Drawdown, a Sanction check is performed on borrower. If any hits are found, then compliance approval can be obtained.
Post all the above step, application will land into the final approval. After the approvals, cash is remitted to the agent, before currency cut off.
Initiating Participant Drawdown
The basic registration details for Participant Drawdown for a prospective borrower can be initiated using this Initiation Screen, provided the user has the required access rights.
How to reach here:
Corporate Lending > Operations > Syndication > Participant Drawdown
How to initiate a Participant Drawdown:
Basic Details
Syndication Drawdown Amendment Process helps the user to modify the existing draw down contract. User will be able to increase the Principal amount, change loan maturity date or change the interest margin of the existing Agency or Participant draw down contract.
Initiating Syndication Drawdown Amendment Process
The basic registration details for Drawdown Amendment Process can be initiated using this Initiation Screen, provided the user has the required access rights.
How to reach here:
Corporate Lending > Operations > Syndication > Drawdown Amendment
Basic Details
The process flow for Syndication Drawdown Amendment Process undergoes the below stages:
User will be able to make the input at the entry stage. User can view the details about the existing Drawdown and will be able to amend the respective data segments to amend the Principal amount, Maturity date or Interest margin.
Below Data Segments will be used in this stage.
Parties
Existing Parties details will be defaulted and user will not edit any details
Loan Details
User can view the existing Drawdown details and will not be able to edit any details.
Additional Loan Details
User can view the existing details and will not be able to edit any details.
Restructuring Amendment Details
User can make changes to Principal amount or maturity date in this data segment.
Interest margin Details
User can make changes to the existing Interest rate in this data segment.
User will be able to review and approve all the details captured in the previous stage. If any corrections to be done in the data captured in Entry stage, user will be able to send back the application to the Entry stage for correction. Upon approving the application, OBCLPM will hand over all the information to OBCL. With this hand off OBCLPM will be able to amend the existing draw down in OBCL with the details captured in the Entry stage.
Below Data Segments will be used in this stage as read-only and User will be able to review all the details in the data segment and will not be able to edit any details.
Syndication Drawdown Rollover process helps the user to rollover or split existing drawdown contract. A Borrower could opt to split the drawdown into 1 or more drawdowns and roll them over. The product & interest preferences for the new child contract could be captured on this process flow.
Initiating Syndication Drawdown Rollover Process
Drawdown Rollover Process can be initiated by giving the basic registration details in the Initiation Screen, provided the user has the required access rights.
How to reach here:
Corporate Lending > Operations > Syndication > Rollover
Basic Details
The process flow for Rollover Process undergoes the below stages:
User will be able to make the input at the entry stage. User can view the details about the existing Drawdown and will be able to amend the respective data segments to Rollover or Split the drawdown along with the Rollover.
Below Data Segments will be used in this stage.
Parties
Existing Parties details will be defaulted and user should not amend any of the information
Rollover Detail
Existing details of the Drawdown will be defaulted and user will be able to capture the details of the new Rollover drawdowns details. Also user will be able to capture the necessary details to split the drawdown along with the rollover
Interest Margin Details
The interest and margin details of the rollover or contract will be defaulted in this data segment and user can make necessary amendments if any.
User will be able to review and approve all the details captured in the previous stage. If any corrections to be done in the data captured in Entry stage, user will be able to send back the application to the Entry stage for correction. Upon approving the application, OBCLPM will hand over all the information to OBCL. With this hand off OBCLPM will be able to rollover the existing drawdown contract.
Below Data Segments will be used in this stage as read-only and User will be able to review all the details in the data segment and will not be able to edit any details.
Syndication Restructure process enables the user to pay down the existing Drawdown under a specific Tranche and terminate the Tranche. Through the same process user will be able to create a new Tranche with a difference in Lender allocation based on the amendment agreements received as part of the restructure process and book a new Drawdown under the newly created Tranche. All these activities can be handled through the single Syndication Restructure process.
Initiating Syndication Restructure Process
The basic registration details for Restructure Process can be initiated using this Initiation Screen, provided the user has the required access rights.
How to reach here:
Corporate Lending > Operations > Syndication > Restructure
Basic Details
The process flow for Syndication Restructure Process undergoes the below stages:
User will be able to view the details of the Tranche which needs to be restructured and will be able to select the type of Restructure in this stage. User can fetch the available drawdowns and the selected Tranche and the restructure action as Liquidate and New
Below Data Segment will be used in this stage.
Restructure Tranche:- Details of the selected Tranche can be viewed and select the action on the available draw down accordingly.
User will be able to view the details of the existing Drawdown contract and Tranche contract in this stage. User will be able to make pay down to the existing draw down and make amendment to the existing tranche by making necessary modification. Whatever modification made to the existing tranche details will be considered as the data for the new tranche. Also the user will be able to capture the details of the new draw down to be booked under the newly created Tranche in this stage.
Below Data Segments will be used in this stage.
Loan Details
User will be able to view the details of the existing Drawdown contract and will not be able to edit any details.
Payment Details
User will be able to view the outstanding under the existing loan under various components along with tax. User can capture the payment amount accordingly.
Review Settlement Account
User can park any of the component in to the suspense account using this data segment.
Restructure party
Existing Parties of the Tranche will be defaulted in this data segment and user can make amendment to reflect in the new Tranche
Tranche Details
Details of the existing Tranche will default in this data segment and user can amend the details to reflect in the new Tranche.
Lender Commitments
Participant share of the existing Tranche will default in this data segment and user can amend the details to reflect in the new Tranche.
Margin Details
Details of the existing Tranche will default in this data segment and user can amend the details to reflect in the new Tranche.
Fee Details
Details of the existing Tranche will default in this data segment and user can amend the details to reflect in the new Tranche.
Tranche Repayment Schedules
Details of the existing Tranche will default in this data segment and user can amend the details to reflect in the new Tranche.
Additional Tranche Details
Details of the existing Tranche will default in this data segment and user can amend the details to reflect in the new Tranche.
Margin and Schedules
Details of the existing Tranche will default in this data segment and user can amend the details to reflect in the new Tranche.
Restructure Entity Details
Details of the existing Tranche will default in this data segment and user can amend the details to reflect in the new Tranche.
Restructure Settlement Details
Details of the existing Tranche will default in this data segment and user can amend the details to reflect in the new Tranche.
Restructure Loan Details
User can capture the details of the new loan to be booked under the new Tranche
Additional Loan Details
User can capture the details of the new loan to be booked under the new Tranche
Interest margin Details
User can capture the interest details of the new loan to be booked under the new Tranche
Payment Schedules
User can capture the Payment Schedules of the new loan to be booked under the new Tranche
Sighting Funds Match Review
User will be able to reconcile and sight the expected payment from Borrower. Fund sighting can be either automatic through ML Process or manual.
Below Data Segment will be used in this stage.
Match Sighting Fund:- User can view the expected amount details and match the receivable with the Funds sighted through ML process or manually.
4. Restructure Approval
User will be able to review and approve all the details captured in the previous stages. If any corrections to be done in the data captured in Entry stage, user will be able to send back the application to the Entry stage for correction. Upon approving the transaction, OBCLPM will hand over all the information to OBCL. With this hand off OBCLPM will be able to pay down the draw down in the existing Tranche and crate new Tranche in OBCL and book new drawdown under the newly created Tranche.
Below Data Segment will be used in this stage.
Application Verification:- User will be able to view the summary view of all the data segments used in the previous stages and will be able to verify the data by opening each summary tile.
Syndication Tranche Margin Amendment process enables the user to make the changes to the Interest margin of an existing Agency or Participant Tranche contract. User will be able to specify the Interest margin for various currencies at various effective dates.
Initiating Tranche Margin Amendment Process
The basic registration details for Margin Amendment Process can be initiated using this Initiation Screen, provided the user has the required access rights.
How to reach here:
Corporate Lending > Operations > Syndication > Tranche Margin Amendment
1. In the Tranche Margin Amendment Process initiate screen, provide the required details:
Basic Details
2. Click Initiate to begin the process.
The process flow for Tranche Margin Amendment Process undergoes the below stages:
User will be able to make the input at the entry stage. User will be able to view the details about the existing Tranche and can be able to amend the respective data segments to amend the Interest Margin.
Below Data Segments will be used in this stage.
Tranche Details
Details of the selected tranche will default in this data segment and this information is non editable.
Margin Details
User will be able to make the necessary Interest Margin changes in this data segment.
Margin Amendment Application Approval
User will be able to review and approve all the details captured in the previous stage. If any corrections to be done in the data captured in Entry stage, user will be able to send back the application to the Entry stage for correction. Upon approving the application, OBCLPM will hand over all the information to OBCL. With this hand off OBCLPM will be able to amend the existing Tranche in OBCL with the details captured in the Entry stage.
Below Data Segments will be used in this stage as read-only and User will be able to review all the details in the data segment and will not be able to edit any details.
Tranche Details
Details of the selected tranche will default in this data segment and this information is non editable.
Margin Details
User will be able to make the necessary Interest Margin changes in this data segment.
User will be able to review and approve all the details captured in the previous stage. If any corrections to be done in the data captured in Entry stage, user will be able to send back the application to the Entry stage for correction. Upon approving the application, OBCLPM will hand over all the information to OBCL. With this hand off OBCLPM will be able to amend the existing Tranche in OBCL with the details captured in the Entry stage.
Below Data Segments will be used in this stage as read-only and User will be able to review all the details in the data segment and will not be able to edit any details.
Tranche Financial Amendment is the process of modifying the financial details of the existing Tranche Through this functionality, user will be able to make changes to the existing Agency or participant tranche contract. User will be able to increase or decrease the Principal amount or change tranche maturity date.
Initiating Tranche Financial Amendment Process
Tranche Amendment Process can be initiated by giving the basic registration details in the Initiation Screen, provided the user has the required access rights.
How to reach here:
Corporate Lending > Operations > Syndication > Tranche Financial Amendment
Basic Details
The process flow for Tranche Financial Amendment Process undergoes the below stages:
User will be able to make the input at the entry stage. User can view the details about the existing Tranche and will be able to amend the respective data segments to amend the Tranche amount or maturity date
Below Data Segments will be used in this stage.
Parties
Existing Parties details will be defaulted and user should not amend any of the information
Tranche Details
Existing details of the Tranche will be defaulted and user should not make any changes to the Tranche Details.
Tranche Amendment Details
User can make the changes to the Tranche amount or maturity date in this data segment.
User will be able to review and approve all the details captured in the previous stage. If any corrections to be done in the data captured in Entry stage, user will be able to send back the application to the Entry stage for correction. Upon approving the application, OBCLPM will hand over all the information to OBCL. With this hand off OBCLPM will be able to amend the existing Tranche in OBCL with the details captured in the Entry stage.
Below Data Segments will be used in this stage as read-only and User will be able to review all the details in the data segment and will not be able to edit any details.
Syndication Bulk Payment process enables the user to pay down multiple draw down contracts under the same facility in a single payment process. User will be able to pay down both Principal and Interest components of multiple Loan drawdowns selected under various Tranches of the same Facility.
Initiating Bulk Payment Process
The basic registration details for Bulk Payment Process can be initiated using this Initiation Screen, provided the user has the required access rights.
How to reach here:
Corporate Lending > Operations > Syndication > Bulk Payment
Basic Details
The process flow for Bulk Payment Process undergoes the below stages:
User will be able to view the details of the Facility and Tranche selected during the initiation, in respective data segments and will be able to amend the details. User will be able to view the details of all the drawdowns under the selected facility and can filter by tranche or borrower. User will be able to select the drawdowns which are to be paid. User can set the limit date and effective date of the bulk payment and can enable if cash match is required or taxes are waived.
Below Data Segments will be used in this stage.
Parties
Existing Parties details will be defaulted and user will not edit any details
Bulk Loan Details
User will be able to view the details of all the drawdowns under the selected facility and will be able to filter by tranche or borrower to pay down.
Bulk Payment Details
User will be able to view the outstanding under the selected loans under various components along with tax. User can capture the payment amount accordingly.
Review Settlement Account
User can park any of the component in to the suspense account using this data segment.
Settlement Details
All the available Settlement accounts of all the parties will be defaulted in this data segment.
User will be able to reconcile and sight the expected payment from Borrower or Agent. Fund sighting can be either automatic through ML Process or manual.
Below Data Segment will be used in this stage.
Match Sighting Fund
User can view the expected amount details and match the receivable with the Funds sighted through ML process or manually.
User will be able to review and approve all the details captured in the previous stage. If any corrections to be done in the data captured in previous stages, user will be able to send back the application to the Entry stage for correction. Upon approving the application, OBCLPM will hand over all the information to OBCL. With this hand off OBCLPM will be able to pay down multiple draw down contracts in OBCL.
Below Data Segments will be used in this stage as read-only and User will be able to review all the details in the data segment and will not be able to edit any details.
Syndication Payment Process is to make the repayment of the Principal and interest of the Syndication Loan contract. This process will handle the Loan repayment for both Agency and Participant deals.
The process flow for Payment Process undergoes the below stages:
Upon initiating the Payment process by selecting the right Facility,
Tranche and Loan contract, user will be able to capture the Payment details
of the Loan in the Payments Entry stage. User will be able to view the
Scheduled breakup of the Loan also will be able to override the settlement
instruction if required.
User will be able to reconcile and sight the expected payment either from Borrower or Agent. Fund sighting can be either automatic through ML Process or manual.
The Payment details are reviewed for approval. If all the information are correct and no amendments required, then the data will be handed off to OBCL to process the Loan Payment.
Initiating Payment Process
The basic registration details for Payment Process can be initiated using this Initiation Screen, provided the user has the required access rights.
How to reach here:
Corporate Lending > Operations > Syndication > Payment
Basic Details
User can consolidate one or more contracts into a single parent contract. This can be done through the Consolidation Rollover menu under syndication module. User can initiate the process flow and the application will move through various stages of the business process flow. The process of consolidate rollover can be initiated by the Relationship Manager or any bank user (with relevant rights).
The list of stages that are required for a Consolidate Rollover process will be pre-defined in Conductor process and the data segments that are applicable for every stage can be configured in Business Process maintenance. Based on this setup, system derives the process flow for every loan application.
The process flow pre-defined for Consolidate Rollover is provided for quick reference:
Initiating Consolidation Rollover
How to reach here:
Corporate Lending > Operations > Syndication > Consolidation Rollover
How to initiate Consolidation Rollover Process Flow:
Basic Details
Facility Details
Displays the list of all facilities that are created for the Customer Number. You can select the appropriate Facility ID.
Tranche Details
Displays the list of all tranches under the facility that are created for the Customer. You can select the appropriate tranche ID under which the loans to be consolidated.
On submit of the screen, a unique Application Registration number will be auto generated by the system, which are used throughout the process and for further tracking.
Based on the user rights the system will navigate the user to the first manual stage of the process flow.
Provides information about the usage of data segments that are configured at each stage. Every data segment can be configured as a mandatory or non-mandatory at Business Process Code maintenance based on the business product code defined. Each data segment has the following action buttons.
Each data segment has the option to upload the specific documents required for the application.
Below are the sample date segment which can be configured for this process flow.
Under this Datasegment user will be able to capture the basic details of the transaction detailed below.
Tranche Reference No
Display the tranche detail which was selected in initiate screen.
Value date
Parameter for selecting the drawdowns for consolidation is the value date. In effect, this date refers to the maturity date of the child drawdowns that have to be consolidated as part of rollover. In addition to the same combination of counterparty, product, and currency, the child drawdowns should also have the same maturity date for consolidation to occur.
Counterparty
You have to select the counterparty of the drawdowns that have to be consolidated as part of rollover. The option list displays the list of all active customers of the branch.
Contract Currency
You have to select the currency of the drawdowns that have to be consolidated as part of rollover. The option list displays the allowable currencies for the tranche. Select a currency from this list.
Product Code
You have to select the drawdown product based on which the system selects the drawdowns for consolidation. This option list the drawdown products associated with the tranche product under which the selected tranche is processed
Rollover Type
You have to indicate the type of rollover you wish to perform. The available options are:
(a)Consolidated – In this case, all selected drawdowns with the same combination of Tranche + Drawdown Product + Counterparty + Currency + Maturity Date is consolidated into a single contract upon rollover.
(b)Consolidated + Split – In this case, the system first consolidates the selected drawdowns as per the consolidation instructions and then splits the net result of consolidation as per the split instructions.
Rollover Amount
User can select Principal or Principal + Interest
Rollover Mode
Here use can select an one option among the available to option (a)Auto: The transaction will be automatically handed over to back office. (b) Manual: Application will be waiting under a stage “Manual Handover stage”.
Maturity Date
You can capture the maturity date of the rolled over drawdown here. If you do not specify the maturity date, the system arrives at the maturity date based on the ‘Roll By’ value and the ‘Maturity Days’ specified for the drawdown.
Maturity Days
User can input the number of days that is to be added to the value date of the new split Drawdown to arrive at the maturity date of the drawdown.
Roll By
Indicate the tenor basis upon which the maturity days specified for the rolled-over contract will be derived. The options are:
Child Contract Ref No
You have to select the child drawdowns that have to be consolidated as part of rollover. The option list displays all drawdowns with the same combination of counterparty, product, currency and maturity date that you select. Select a drawdown from this list.
Click the ‘Add Consolidation Details’ button to select the next drawdown from the list.
Principal Roll Amount
The system displays the outstanding principal that can be rolled over for each child drawdown. You can amend the outstanding principal, if required. This amount can be either greater than or lesser than the outstanding principal amount. The system treats this as a special amount rollover.
Interest Roll Amount
In addition to displaying the outstanding principal, the system displays the interest to be capitalized for each drawdown in the ‘Interest Roll Amt’ field. You cannot amend this amount.
Total Roll Amount
Sum of Principal Roll amount and Interest Roll amount
Driver Contract
From the list of child drawdowns selected for consolidation, you have to designate one of them as the ‘Driver Contract’. The consolidated drawdown (generated upon rollover) inherits the preferences (information such as settlement details, schedules, MIS details and so on) of the driver contract you select here.
NLP is a process in which the system identifies the document id, document type and content from an uploaded file and initiates the respective process.
The process flow for NLP undergoes goes the below stages:
If it is successful, then it will initiate the respective process using the enriched values. And the workflow ends.
If it is failure, then process will land in the manual correction. User will have the NLP values that separate during the initiation process. User will manually update the missing values and proceed.
With this the workflow will end.
On failure of initiation, it will land in decision. In the manual stage, if the user gets cancel then the workflow will be terminated.
This process helps the user to initiate the Syndication Participant Drawdown process with the support of Machine Learning. On uploading the Drawdown notice from lead agent, the machine learning job automatically analyses the document, extract its contents & creates a Participant Drawdown task for the corresponding Syndication Facility and Tranche. This process will also fill in the extracted information in the respective fields of the applicable data segments. This task will be available in the task pool, enabling user to take forward for further evaluation & approvals.
Initiating Machine Learning Process for Drawdown
Machine Learning Process for Drawdown can be initiated by giving the basic registration details in the Initiation Screen, provided the user has the required access rights.
How to reach here:
Machine Learning >Document Upload
User needs to go to the above specified menu option and select the file to upload. Once the Drawdown notice from the Agent is selected, system will read the document and displays the content of the document. Select the appropriate Document Type from the dropdown and click on upload button to initiate the task.
Upon submitting the document ML process will parse the document and initiate the Participant Drawdown process and the task will be available in My Task of the user to proceed further. Incase if the ML process is unable to initiate the Drawdown process, then the task will be available in Free Task in manual correction stage. User can acquire the task and manually fill in the required details to initiate the process. The task will move to My Task upon providing the right information, for the user to proceed further with the additional information.
This process helps the user to initiate the Syndication Participant Drawdown Rollover process with the support of Machine Learning. On uploading the Rollover notice from lead agent, the machine learning job automatically analyses the document, extract its contents & creates a Rollover task for the corresponding Syndication Facility and Tranche. This process will also fill in the extracted information in the respective fields of the applicable data segments. This task will be available in the task pool, enabling user to take forward for further evaluation & approvals.
Initiating Machine Learning Process for Rollover
Machine Learning Process for Rollover can be initiated by giving the basic registration details in the Initiation Screen, provided the user has the required access rights.
How to reach here:
Machine Learning >Document Upload
User needs to go to the above specified menu option and select the file to upload. Once the Rollover notice from the Agent is selected,
system will read the document and displays the content of the document. Select the appropriate Document Type from the dropdown and click on upload button to initiate the task.
Upon submitting the document ML process will parse the document and initiate the Rollover process and the task will be available in My Task of the user to proceed further. Incase if the ML process is unable to initiate the Rollover process, then the task will be available in Free Task in manual correction stage. User can acquire the task and manually fill in the required details to initiate the process. The task will move to My Task upon providing the right information, for the user to proceed further with the additional information.
This process helps the user to initiate the Bilateral Loan Origination process with the support of Machine Learning. On uploading the Loan Details Agreement, the machine learning job automatically analyses the document, extract its contents & creates a Loan Origination task. This process will also fill in the extracted information in the respective fields of the applicable data segments. This task will be available in the task pool, enabling user to take forward for further evaluation & approvals.
Initiating Machine Learning Process for Loan Origination
Machine Learning Process for Loan Origination can be initiated by giving the basic registration details in the Initiation Screen, provided the user has the required access rights.
How to reach here:
Machine Learning >Document Upload
User needs to go to the above specified menu option and select the file to upload. Once the Loan Details Agreement is selected, system will read the document and displays the content of the document. Select the appropriate Document Type from the dropdown and click on upload button to initiate the task.
Upon submitting the document ML process will parse the document and initiate the Loan Origination process and the task will be available in My Task of the user to proceed further. Incase if the ML process is unable to initiate the Loan Origination process, then the task will be available in Free Task in manual correction stage. User can acquire the task and manually fill in the required details to initiate the process. The task will move to My Task upon providing the right information, for the user to proceed further with the additional information.
This process helps the user to resolve the Payment advices received and match the same during the Syndication payment Process. On uploading the Payment Advises, the machine learning job automatically analyses the document, extract its contents park the item in the resolved queue. While the user process a Syndication Payment, during the sight fund stage, these resolved funds will be available for matching.
Initiating Machine Learning Process for Sight Fund
Machine Learning Process for Sight Fund can be initiated by giving the basic registration details in the Initiation Screen, provided the user has the required access rights.
How to reach here:
Machine Learning >Document Upload
User needs to go to the above specified menu option and select the file to upload. Once the Payment Advise is selected, system will read the document and displays the content of the document. Select the appropriate Document Type from the dropdown and click on upload button to initiate the task.
Upon submitting the document ML process will parse the document and resolve the document and resolved task will be available in My Task. This task will get closed once the corresponding fund is matched in the applicable Payment Process. Incase if the ML process is unable to resolve the Payment advice, then the task will be available in Free Task in manual correction stage. User can acquire the task and manually fill in the required details to complete the process. The task will move to My Task upon providing the right information.