Create a Drawing in a Credit Facility

Credit facility drawings are underlying transactions of credit facilities.

Credit facility drawings work similarly to standard loans, with their own characteristics (start and maturity dates, payment frequency, interest rate, etc.) and workflow (e.g. a drawing can be early repaid).

Every action carried out on a credit facility drawing impacts the associated credit facility, e.g. non-usage fee payments are updated if a credit facility drawing is repaid.

 

Prerequisites
  1. Create a credit facility
  2. Move the credit facility to the actual portfolio

 

Navigate to the Debt & Derivatives Application
  1. Log in to your Fairways Debt account, e.g. https://login.financeactive.eu/.
  2. Select a customer account.
  3. Navigate to Applications Applications.png > Debt & Derivatives.

 

 

Create a Drawing in a Credit Facility
  1. Open an actual credit facility.

Note: You can only create drawings for actual credit facilities, i.e. credit facilities located in the actual portfolio.

DebtDerivatives_Portfolio_Facility_EN.png

  1. Click Drawings > New Drawing.

DebtDerivatives_Portfolio_Drawing_EN.png

  1. Complete the form with all relevant details.

Notes:

  • Fields marked with an asterisk * are mandatory.
  • Some fields are pre-filled using the credit facility details.
Field Description
Reference Code Unique reference of the transaction. Identifies the transaction in the portfolio. The reference must be unique among all the entities managed in the account.
External Reference Code Used by external systems to identify the transaction. Used when transactions are imported/exported from/to another system.
Principal Principal amount of the loan.
Currency Currency of the principal.
Borrower Borrowing entity in the system, defined at the credit facility level.
Lender Can be either internal (an entity in the system) or external (a commercial bank), defined at the credit facility level.

DebtDerivatives_Portfolio_Drawing_Create_Transaction_EN.png

Field Description
Trade Date Date at which the transaction has been traded. From that date, the system takes the transaction into account as an item of the portfolio.
Start Date

Unadjusted start date of the transaction.

Note: The drawing start date must be equal to or later than the start date of the credit facility.

End Date  Unadjusted end date of the transaction.
First Roll Date Unadjusted date of the first payment (useful when the first period is a long or short stub).

DebtDerivatives_Portfolio_Drawing_Create_Dates_EN.png

Field Description
Amortization Type Amortization mode. 

DebtDerivatives_Portfolio_Drawing_Create_Amortization_EN.png

Field Description
Indexing Index

Name of the index used to calculate the rate value, e.g. FIXED for fixed rate.

Note: The field beside displays depending on the index selected.

Interest Rate

Fixed rate value in percentage.

Initial Interest Rate

Initial rate of the custom index.

Spread Spread (or margin) value in percentage.
Day Count Convention Used to compute the day fraction of an interest accrual period.
Capitalized Interest Defines whether the interest amount should be paid at the payment date, or added to the principal (and included in the outstanding balance for the following periods).

DebtDerivatives_Portfolio_Drawing_Create_Indexation_EN.png

Field Description
Frequency Frequency of the payments.
Adjustment Adjustment mode for the interest calculation. The nominal start and end dates of the accrual period will be adjusted accordingly before computing the interest amount.
Payment Date Adjustment Adjustment mode for the payment date.
Last Stub Period Defines whether the last period should be a short or long stub when it does not match the selected frequency. Short End Stub by default.

DebtDerivatives_Portfolio_Drawing_Create_Payment_EN.png

  1. Enable Show Details after Validation to automatically open the new drawing profile once created.
  2. Click OK to create the drawing.

The new drawing displays in the credit facility as a draft.

DebtDerivatives_Draft_Drawing_Created_EN.png

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