How-to: Credit Facilities - Deal input

Created by Erik Åkerlund, Modified on Mon, 20 Feb 2023 at 02:28 PM by Erik Åkerlund

In this article we are going to show how to create a new Credit Facility with both commitment, utilisation and upfront fees. We will also show how to register draw-downs under the created facility.

Here's how it works:

Create a Credit Facility

  1. Go to Deal input > Credit Facility
  2. Create a new facility be pressing F6 or Create new and give the facility a name. Press OK.
  3. In the wizard, use the tab key to move through the fields. Start by entering Legal entity and Counterpart.
  4. The credit line is entered as a tranch of type 'F' in the L/D field.
  5. Then enter the facility amount in the Capital amount field. It is by default set to a negative amount

  6. The conditions for the Commitment fee is entered in the Interest payments section. For example the commitment fee % is entered in field Interest %.
  7. Utilization fee is entered in the field Util fee %.


If it is a deposit facility (lending to an internal counterparty for example) the facility amount (capital amount) needs to be changed to a positive amount after the tranche has been generated.

Upfront fees

Upfront fees are entered as a new Tranche (L) as Oth C/R, see the article How-to: Handle upfront fees . If it is an upfront fee which shall be paid periodically in the same interval as Commitment fee it is entered in the F Tranche.

Create draw-downs on Credit Facility

  1. To add a draw-down under the Facility itself, click on a new row.

  2. Draw-downs are entered as regular loans (tranche of type ‘L’). Note! If it is a deposit facility the lending should be entered as a tranche of type ‘D’.

Plan rate

Note! When navigating from field FX Rate the field 'Plan rate' will pop up. Enter the FX Rate between the facility currency and the draw-down currency. The draw-down currency is the price currency in the relationship. For example, if the facility currency is EUR and the draw-down currency is SEK the plan rate should be entered as a EUR/SEK rate.

Commitment fee

The commitment fee amount (presented in column Interest amount) is calculated on the unused portion of the credit line.

Accounting of commitment fees

Also see article: Accounting of commitment fees

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