1.8 Agency Drawdown
Use Agency Drawdown to submit the Drawdown notice to Agent Bank to arrange the funds on a certain date.
Agency Drawdown is a process in which the borrower submits the Drawdown notice to Agent Bank to arrange the funds on a certain date. Agent bank performs its due diligence on the Drawdown Notice and if satisfied then proceeds will be send to Borrower on the given date.
- Entry
In this stage, Agent bank captures the funding requirement and perform the due diligence on the Drawdown notice received in form of PDF from the customer. Agent bank also verifies if all the Condition precedent along with Further Condition precedents and Drawdown Conditions have been satisfied.
- Verification
All the data gathered in the previous stage is 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 is generated and send to respective parties. In case of any discrepancy, the bank reverts to borrower for more details or moves to next stage.
- Treasury Rate
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 are captured.
- Enrichment
Under this stage, bank can configure additional data segment to capture more data which are required.
- Funds Recon
Bank sends 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 reconciles each lenders share in Drawdown shares. If funds not received then reminders would be sent.
- Exceptional Settlement Risk Approval
If the funds from any lender is not received or sighted, then Intra-day Risk approvals for funds are arranged.You can request for intraday approval, if any lender has not sent the funds on DD date.
- Exceptional Compliance Approval
In case of drawdown, a sanction check is performed on borrower. If any hits are found, then compliance approval can be obtained.
- Approval
Post all the above step application lands into the final approval. After the approvals, cash is remitted to the borrower, before currency cut off.
Parent topic: Loans Syndication