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.