1.2 Pre-Mandate Co-Arranger
Use Pre-Mandate Co-Arranger to manage the beginning of the Syndication 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
Entry
Pre-Mandate Co-Arranger starts with the receipt of the invitation from the Lead Bank, to join the arrangement of the Syndication. You can 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 are initiated.
Review Pre Analysis
You can wait for the response from Borrower domain to get the initial analysis on the parties. Based on the response you can take the appropriate decision to proceed. If the decision is to proceed with the Syndication, you can sign the NDA and send the acceptance confirmation to the Lead Bank. Else confirm the rejection. Advice is sent along with attachments. You can wait for the additional details to receive from the Lead Bank.
Initiate QE
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.
Review QE
Upon reviewing the customer evaluation, you can take a decision to proceed with the syndication or not.
Approval
This decision is reviewed by the approver. Approver can either approve the solution or cancel the application or proceed with the application. Advice is sent to the Lead bank confirming the outcome.
Solution Structuring
If the Syndication Solution has already agreed by the Borrower with the Lead Bank, then you can move to the Commitment Confirmation Stage. If the solution is not finalized, then you can finalize the solution in discussion with the Lead Bank.
Solution Firming
Approver can approve the agreed Syndication Solution or reject. Once the solution finalized and agreed by the Borrower, then you can move to the Commitment Confirmation Stage
Commitment Proposal
At this stage you can discuss with the Lead Bank and other Co-Arrangers if any, you can finalize the commitment allocation for the Co-Arranger and send for the approval.
Commitment Approval
If the approver is not agreeable to the allocation, you should redo the allocation. Upon finalization of the allocation you can initiate the credit approval for self Arranged portion if the syndication arrangement is underwriting.
Review Credit Approval
If the Credit approval is not received for the self-allotted amount then you should go back and redo the allocation. Once the Credit approval is obtained you can 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 is sent to the Lead Bank.
If the self arrangement is on Best effort basis, then no credit approval is required and you can 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 is sent to the Lead Bank.
If no credit approval then cancel the application if the arrangement is underwriting.
Commitment Confirmation
You can review the Arrangement allocation from the Lead Bank. If there is any difference in the allocation then you can redo the allocation else move to the next stage to wait for the Mandate Docs. If no allocation cancel the application. You can also finalize the syndication roles of each arranger.
Mandate Docs Review
Once you receive the Draft mandate Docs from the Lead bank and send the same for the review of the internal legal.
Docs Review by Legal
Internal Legal Team reviews the documents and provides the comments.
Review Legal Comments
Up on receipt of the Legal comments, you can send the comments to the Lead Bank. Advice is sent to the Lead bank along with attachments.
Document Execution
Up on receipt of execution version of the Docs, then you can 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. You can process the documents and send the signed copy to the Lead Bank for consolidation. Advice is sent along with attachments.
Track Executed Docs
You track the receipt of fully processed documents. With this the pre-mandate stage will be closed.
Parent topic: Loans Syndication