This document shows the detailed procedures on how to maintain facility syndication in CS Lucas system.
WHY IS THIS IMPORTANT?
This allows allocation of loan facility limit from different lenders to be maintained for the syndicated loan facility.
1. From the main menu, select Set Up > Risk > Facility.
2. Select Accounting Centre from the dropdown. Click Refresh. System will show the list of facility created for the selected accounting centre.
3. Click on the short name of the syndicated loan facility. In this example, TFS<DBS-SG.
4. The Amend Facility screen will be displayed.
5. Click Syndication.
6. In this screen, system will shows the latest limit amount and the limit with effect date.
7. Select the syndicated member from the Counterparty drop down field. In this example, we will maintain for CITI-SG, ABN-SG and DBS-SG.
8. Enter the commitment amount and allocated amount for each counterparty. This is mandatory.
9. Enter description if any.
10. Select the role of the counterparty by ticking on the checkbox. This is user definable and can be set up under Set Up > Global > User Definable > Syndication Role.
11. Then, click Add.
12. It will be added to the table on the right.
13. Repeat step 7 to 10 to add for other syndicated member.
14. For the lead counterparty/ bank, it will be highlighted in yellow. The total allocated amount between the different counterparties cannot exceed the limit amount.
15. When completed, click Save.
16. You will be returned to Amend Facility screen. Click Back Button to return to Facility screen.
17. From the Facility screen, tick on the checkbox beside the amended facility short name.
18. Click Approve. A popup appears to confirm, click OK.
19. With the syndication information maintained, system can based on the allocation amount to split the limit, utilisation and available amount by syndicated member in report 1632 Facility – By Counterparty Classification.
Please note that the transaction should be booked with the lead bank/ counterparty only.
FREQUENTLY ASKED QUESTION