A facility agreement in Fairways Debt is an envelope involving different tranches subject to specific legal conditions (standard loans), which can be shared among pools of different lenders and borrowers. Third parties are not necessarily involved in all tranches. This type of financing transaction is widely used in the real estate sector.
Prerequisite
Navigate to the Debt & Derivatives Application
- Log in to your Fairways Debt account.
- Select a customer account.
- Navigate to Applications > Debt & Derivatives.
Open a Facility Agreement
- Navigate to Draft.
- Click the relevant facility agreement to open its profile.
The facility agreement profile displays.
Create a Standard Loan Tranche in a Facility Agreement
- Click Create Loan Tranche > Create Standard Loan Tranche.
- Complete the form with all relevant details.
Note: Fields marked with an asterisk * are mandatory.
| Field | Description |
|---|---|
| Reference Code |
Unique reference of the transaction. Identifies the transaction in the portfolio. Note: 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 from or exported to another system. |
| Principal | Principal amount available for drawing in this tranche. |
| Currency | Currency of the tranche. |
| 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. Note: The facility agreement dates apply by default. |
| Start Date |
Unadjusted start date of the transaction, date of the first drawing of the tranche. Note: The facility agreement dates apply by default. |
| End Date |
Unadjusted end date of the transaction. Note: The facility agreement dates apply by default. |
| First Roll Date | Unadjusted date of the first payment (useful when the first period is a long or short stub or when different from the start date). |
| Field | Description |
|---|---|
| Availability Period |
Indicates if the loan includes drawings and amortization:
Notes:
|
| End of Availability Period | Indicates the last date at which drawings can be made. |
| Field | Description |
|---|---|
| Amortization Type | Amortization mode. |
| Consolidation Start Date |
Note: This field is only available for drawings with amortization. Indicates the date at which amortization can start. |
| Field | Description |
|---|---|
| Index |
Name of the index used to calculate the rate value, e.g. FIXED for a fixed rate. Note: The field beside displays depending on the index selected. |
| Interest Rate |
Fixed rate value in percentage. Note: This field displays depending on the index selected. |
| Initial Interest Rate |
Initial rate of the custom index. Note: This field displays depending on the index selected. |
| Spread |
Spread (or margin) value in percentage. Note: This field displays depending on the index selected. |
| Day Count Convention | Computes 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). |
| In Advance Interest Payment | Defines whether the interest amount should be paid at the start of the period. |
| Field | Description |
|---|---|
| Frequency | Frequency of the payments. |
| Interest Calculation 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:
Note: If neither stub is selected, the short stub applies by default. |
- Enable Show Details after Validation to automatically open the new transaction profile once created.
- Click Apply.
The new standard loan tranche displays in the facility agreement.
Adjustment
Adjustment modes define how the system rolls dates in case of holidays in the calendar.
| Field | Description |
|---|---|
| Unadjusted | Not rolled. |
| Preceding | Rolled to the previous business day. |
| Following | Rolled to the next business day. |
| Modified Preceding | Rolled to the previous business day, only if that day occurs in the same month. Otherwise, rolled to the next business day. |
| Modified Following | Rolled to the next business day, only if that day occurs in the same month. Otherwise, rolled to the previous business day. |
| End of Month (unadjusted) | Rolled to the last day of the month. |
| End of Month (preceding) | Rolled to the last day of the month, then adjusted to the previous business day. |
| Modified Following (year) | Rolled to the next business day, only if that day occurs in the same year. Otherwise, rolled to the previous business day. |