3.6.1 Mapping Products for Borrower and Participant Contracts

You can associate several tranche products to a facility product. To each of the tranche products, you can associate several drawdown products. Each time you initiate a borrower tranche or drawdown contract under the Facility contract, you have the option of selecting one of the tranche or drawdown products you have associated with the facility product under which you have booked a contract. The system then defaults the attributes of the product to the contract.

Note:

This feature allows you to associate any LC product (which can be treated like a drawdown product) with other drawdown products under a tranche. The participant product that is linked to the borrower facility product while defining the participant product is displayed as the Offset Participant Product.

Example

Let us assume that you are maintaining a borrower facility product called SYN2. You have associated the following products with this product:

• Tranche Products
  • Borrower tranche product - BT02
  • Participant facility product – PT02
• Drawdown products
  • Borrower drawdown (loan) product - BD02

You are initiating a borrower tranche contract under a main syndication contract involving the syndication product SYN2. Automatically, the system defaults the product codes and attributes of:

• BT02 for the borrower tranche contract
• PT02 for the participant tranche contract

Similarly, the product codes and attributes of BD02 and PT02 are defaulted for the corresponding drawdown contracts under each tranche.