When the deal is opened and if a funding has been requested by the grantor, the Syndication Party must provide the requested funding and cannot deny the request.
In Funded Syndications the Syndication Partner will transfer funds for one or more sold liabilities to the grantor bank. The funds received will be credited to a special current account reserved for Funded Syndications. The funds received will be in the same currency as the Syndication.
A Syndication Account (SY) can be set up like any other account through the account creation transaction Adding an Account. For the funding process to take place, a Syndication Account must be available to a Syndication Party in the same currency as the contract.
When Funded Syndications are received in the subsequent transaction SDTFBI (Funding Inbooking), they will be credited (e.g., using disposition Direct Account Credit ‘DAC’) to an account with type ‘SY’, in the currency of the contract with the holder of the account being the Syndication Party.
When Funded Syndications are paid back in the transaction SDTFBO (Funding Repayment), they will be debited (e.g. using disposition ‘DAD’) to the same ‘SY’ account that was used to credit the funds.
For a Funded Syndication special interest (SYCXFU) is calculated for the funded amount and period. This interest is based on the defined fee settings and is paid to the syndication partner during the ‘Funding Repayment’ transaction.
|Possible Syndication Status||Comments|
|Funding Requested||The status is not defaulted here; the user needs manually to choose the status.|
|Booked In Unfunded|
When the grantor requests for funding from the Syndication Party, the Party must provide the requested funding. The main panels used here are the Liabilities and Funding Request panels.
When the user requests funding, the status must be set to ‘Funding requested’ manually.
The text is loaded from the Request for Funding template defined in the DBIATX transaction the user can modify the details if required. This text is then used in the outgoing message to the Syndication Party.
To request funding from the Syndication Party by the grantor, SDTFUN transaction is used.
Select it from the menu item[Other Products -> Syndication -> Deal Funding -> Funding Request].
When you have made your changes, click on the ( ) Save function to save all the the data entered in the transaction to the database.