5.2.1 Capturing Details in the ‘Drawdowns’ Tab

You can change some of the default values for a drawdown. You can also capture additional information specific to a drawdown in the Drawdowns tab of the screen.

The details that default and those that you can change are discussed below:

Table 5-2 Drawdowns tab details

Fields	Description
External CUSIP/ISIN	Internal and External CUSIP/ISIN is defaulted from the tranche for new drawdowns and cannot be changed at the drawdown level. If there is a change in the External CUSIP at the tranche level, it gets propagated to the drawdowns for the tranche. The updated details for the drawdown are sent to Markit, a financial system that acts as an inventory for all agency activities, through FpML messages. Refer the chapter FpML Messaging for more details on the updation process. For more information on Internal and External CUSIP Number refer section Capturing Contract Details in this chapter.
Currency	You have to select the currency for the drawdown. The option list displays the currencies allowed for the tranche. If the drawdown currency is different from the tranche currency, the system displays the following message: Exchange Rate needs to be fixed! The Exchange Rate Fixing Date displays the current system date (booking date of the drawdown). Note: If the drawdown currency is different from the tranche currency and the Exchange Rate Code that defaults from the product is not maintained for the currency pair (tranche and drawdown currencies), the system displays an error message. For more details on exchange rate fixing, refer the heading Fixing exchange rate for the DD currency in this chapter.
Amount	Specify the amount being availed by the customer through the drawdown. This amount should be between the minimum and maximum DD amount specified at the tranche level. When you capture the amount, system displays its equivalent in the tranche currency (Amount in Tranche Ccy field). The sum of all drawdown amounts must not exceed that of the borrower tranche, total facility amount, and global LC sublimit at the tranche level. Note: Collateral net available amount is included in the validation for drawdown amount. New borrowings are allowed only if the drawdown amount is less than or equal to ((Least of Net Available Collateral Amount for the Drawdown Value Date and Tranche Amount) – (Total Outstanding)). If the Borrower is classified, the drawdown amount entered here requires dualauthorization. LC drawdown (Issuance) amount for a borrower should not exceed the LC Sublimit defined for the borrower for that currency and the participant. The sum of all drawdown amounts are calculated based on the value date of the transaction. Example In our first example of the facility contract with Mr. Robert Carr, the drawdown schedules requested by him for the first tranche were as follows: Portion of loan desired in the first tranche: 50000 USD 20000 USD on 30th January 15000 USD on 29th February 15000 USD on 31st March For each drawdown that you enter, you would specify the required amount as specified above.
PIK Margin	The PIK amount carried forward from the parent contract during rollover gets displayed here.
Unapplied Amount	The total uninitiated amount for an increase in drawdown principal for each value dated amendment is displayed here.
New Maturity Date	The unapplied maturity date for a value dated amendment is displayed here.
Drawdown Date	By default, the drawdown date is equal to the value date of the tranche. You can change the date to any date within the tranche period. In addition, the date should be later than the start date of the drawdown product. The date should be captured in DD-MMM-YYYY format. The system displays an override if the specified drawdown falls on a holiday of the local currency. The system generates SWIFT messages to be sent to the participants before the drawdown date, intimating them to fulfill their commitment contracts. Example In our first example of the facility contract with Mr. Robert Carr, the drawdown schedules requested by him were as follows: Portion of loan desired in the first tranche: 50000 USD. 20000 USD on 30th January 15000 USD on 29th February 15000 USD on 31st March Portion of loan desired in the second tranche: 50000 USD. 20000 USD on 30th April 15000 USD on 31st May 15000 USD on 30th June When you enter this schedule into the system, the drawdown dates you would specify are 30th January, 28th February, 31st March, 30th April, 31st May and 30th June.
Original Start Date	By default, the original start date of the tranche is applicable to the drawdown. You can specify a different date provided the new date is not earlier than the tranche original start date and not later than the tranche maturity date.
Maturity Date	By default, the tranche maturity date is applied. You can change the maturity date such that it is earlier than the tranche maturity date and less than or equal to the drawdown date. If the drawdown is completely paid ahead of the maturity date, then the maturity date is automatically be changed to the date of the drawdown paid.
DD Notice Date	This date is displayed based on the notification days maintained for the DD currency at the tranche level (in the Currency Details screen). The notification date is arrived at using the notification holiday processing rules maintained for the tranche. For details on maintaining notification days and holiday processing rules, refer the heading Specifying currency details for the tranche in this chapter. In case of current dated or back dated drawdowns, the booking date gets defaulted here. You can change the date beyond the booking date but less than or equal to the value date (if the value date and booking date are different). The system displays an override if the notification date is less than the current application date.
Int Rate Fixing Date	The interest fixing date for the DD currency is displayed based on the Interest rate fixing days defined for the tranche and the list of holiday currencies maintained for each currency allowed for the tranche. The interest rate fixing date is the date (prior to the drawdown date) as of which the interest rate is fixed for a new drawdown or for the new rate fix period. If you change the drawdown currency or the drawdown date, the system re-computes the interest rate fixing date and displays the same here.
Exch Rate Fixing Date	Similarly, the exchange rate fixing date for the drawdown currency is displayed based on the Exchange rate fixing days defined for the tranche and the list of holiday currencies maintained for each currency allowed for the tranche. Exchange rate fixing for the new drawdown or the new rate fix period is done on this day. For details on maintaining exchange rate and interest fixing days and holiday processing rules, refer the heading Specifying currency details for the tranche in this chapter.
Special Amount	Specify the special amount disbursal, if any. Note: For new drawndown, if you enter the negative value in this field, an override message is displayed. If the separate payment message is to be sent for the special amount, the message netting should be set to No in the Accounting Entry Definition screen of the drawdown product for INIT event.
Industry Code	Specify the industry code. The adjoining option list displays all industry codes maintained in the system. You can choose the appropriate one.
Global DD Amount	The Global Drawdown amount is computed and populated during new drawdown booking based on the Tranche, Global Tranche, and Drawdown amounts. The Global Drawdown Amount is computed as follows: Global Drawdown Amount = (Global Tranche Amount / Tranche Amount) * Drawdown Amount. You can amend this amount only for non-lead drawdowns and only if the corresponding Tranche has Cascade Participation set to No. You cannot amend this amount if the underlying Tranche has Cascade Participation set to Yes. The latest Global Amount as on the date of handoff is used for handoff of the Commitment Reduction to the Loans QT system. However, only those Drawdown Global Amounts, with cascade participation set to N, can be amended using the new screen Global Amount Update/Amendment screen. Note: The Global Drawdown amount cannot be updated during drawdown amendments.