16.4.4 Split Renewal Interest Rate Fixing Advice to the Borrower
Likewise, when you split a single loan into multiple loans, you need to fix the interest rates to be applied on each drawdown. You can then send a Split Renewal Interest Rate Fixing Advice to the borrower.
The following details are included in this advice.
- Details of Original Advance
- The reference number of the tranche to which the new drawdown loan is linked.
- The drawdown date.
- The period for Interest calculation.
- The maturity date of the drawdown loan.
- The amount of the main syndicate contract.
- The currency of the tranche to which the drawdown is linked.
- The Base currency equivalent of the drawdown amount
- Details of New Advances
- The amount of the main syndicate contract under which the new drawdowns are initiated.
- The currency of the tranche to which the drawdowns are linked.
- The date on which the drawdown loan contract is to be renewed.
- The maturity date of the drawdown loan.
- The amount for each new drawdown.
- The period for Interest calculation.
- If you have applied a floating interest rate on the drawdown, the Spread (LIBOR basis) that is applied over the floating interest rate.
- The margin applied on the interest rate.
- The interest/lending rate applied on the drawdown.
Parent topic: Interest Rate Fixing Advices