Entry

Pre-Mandate process starts with the biding from the Borrower or the Bank approaching the Borrower User capture the basic details such as Borrower Information, Borrower Related Parties, Syndication Requirement, Expected Collateral value. Borrower and Borrower Related parties are sent to Borrower on-boarding team to start the Borrower evaluation process. If more than one Borrower and related parties are there, then that many process are initiated.

Review Pre Analysis

You can wait for the response from Borrower domain to get the initial analysis on the parties. Based on the response, you can take the appropriate decision to proceed. Up on proceeding with the syndication application, you can create a task with internal legal department to prepare or review the draft Confidentiality Agreement (NDA).

NDA Preparation

Internal legal teams prepare and share the draft Confidentiality Agreement (NDA).

NDA Scrutiny

Up on receipt of draft NDA from the legal with their respective comment, you need to send the NDA to the Borrower for review after the Scrutiny. If any amendments required, then the document is sent back to the Legal team for modification. You can send multiple advises at this stage with attaching the different versions of the NDA.

Borrower Review - NDA

Borrower reviews and sign the NDA if the Borrower is agreeable with the format else sends the borrower comments to the Legal for modification of the draft. Execution of the documents takes place outside the system and Loans only track the status of the document).

Initiate QE

Once the NDA is signed, you can initiate quick evaluation on the customer with the credit system and wait for the evaluation results or you can only perform the evaluation in credit system. You can view the status of the evaluation and receive the result of the evaluation.

Review QE and Solution Structuring

Upon reviewing the customer evaluation, you can take a decision to proceed with the syndication and draft a solution. In addition, you take a decision to proceed with the arrangers or not. If the Arranger Invitation DS is filled at least with one arranger then the application will trigger a different flow, in which you can invite the arrangers to participate and help in providing the solution.

Solution Firming

This decision is reviewed by the approver. Approver can either approve the solution or cancel the application or proceed with the application in two ways one with co-Arranger and one without Co-arranger. If the process is without co-arrangers, then after the solution firming approval, you can send the solution to the borrower or modify the solution or cancel the application.

Solution with Arrangers

If any arranger details are captured other than the home bank, then you can follow this process. Send invitation to the Arrangers captured in the Arranger Invitation data segment. Advice is sent to the Arrangers along with Confidentiality Agreement (NDA). You can wait for the response from arrangers. You can track the acceptance response, the status of NDA execution, and also able to send the reminders.

For the arrangers which are shown interest in the syndication and returned the signed NDA, you can send the additional details about the Borrower. Advice is sent to the Arrangers with attachments. (Inter stage advises). For arrangers which are responded with not interested can mark as rejected. You can capture more arrangers if required other than the invitations send earlier.

Solution Restructuring

All the above activities performed in the previous stage is reviewed by the Approver and every action is processed after the approval at this stage. You can proceed to prepare the Proposal in coordination with the Arrangers. These discussions are outside the system and only proposal is captured in the system. After the solution firming approval, you can send the solution to the borrower and arrangers or modify the solution or cancel the application.

You can send the solution to the Borrower and arrangers and wait for the Borrower response.

Customer Acceptance

In this you can follow up with the borrower if no response. Advice is sent at this stage (Inter stage). Modify the proposal based on the comments from the Borrower. Cancel the application if the Borrower is not agreeing with the Proposal. Advises are sent to borrower and arrangers. Proceed with the next phase Pre-Mandate once the proposal is finalized with the Borrower. Advises are sent to borrower and arrangers.

Arranger Invitation

Once the proposal is agreed with the Borrower, you can proceed with the syndication with co-arrangers if not included already. This stage is occurred only if you decide to proceed with co-arrangers and the co-arrangers are not selected before the solution proposal. This flow is not applicable if the arrangers are already finalized.

Capture the details of the Arrangers and send the invitations to the selected arrangers. Advice to be sent to the Arrangers along with Confidentiality Agreement (NDA). Up on sending the invites, you can come back to the Arranger invite stage to track the responses from the arrangers. You can track the acceptance response and the status of NDA execution and also send the reminders.

For the arrangers which are shown interest in the syndication and returned the signed NDA, you can send the additional details about the Borrower. Advice to be sent to the Arrangers with attachments. (Inter stage advises). For arrangers which are responded with not interested should mark as rejected. You can capture more arrangers if required other than the invitations send earlier.

Once all the arrangers signed the NDA, you can proceed to the next stage or you can take decision to proceed with the responded arrangers. You can intimate the arrangers regarding the finalization of arrangers.

Approval

All the above activities performed in the previous stage is reviewed by the approver and every action is processed after the approval at this stage.

Arranger Commitment Confirmation

At this stage you can conduct the arranger meeting and capture the proposed amount from each arranger for their participation. Meeting will be outside the application.

You can also finalize the syndication party roles of each arranger.

Upon discussion with the arrangers, you can finalize the allocation for each arrangers and send for the approval.

If the co-arrangers are finalised before Customer acceptance of the solution, then the process starts from this stage. In addition, if the lead Bank is proceeding without any coarranger, then the process starts from this stage.

Allocation Approval

If the approver is not agreeable to the allocation, you can redo the allocation.

Upon finalization of the allocation you can initiate the credit approval for self arranged portion if the syndication arrangement is underwriting.

Review Credit Approval

If the credit approval is not received for the self-allotted amount then you should go back and redo the allocation. Once the credit approval is obtained, finalized allocation information is sent to the arrangers. Advises are sent to the arrangers.

If the self arrangement is on Best effort basis, then no credit approval is required and you can initiate the preparation of the mandate document with the help of internal legal upon finalization of the allocation.

Prepare Mandate Docs

Internal legal prepares the Mandate documents and sends to the user for review.

Mandate Docs Scrutiny

You can do the scrutiny of the documents and send it back to the legal if any modification is required. Else you can send the documents to the arrangers for their review. Advice is sent to the arrangers.

Arranger Comments

You can wait for arrangers comments on the mandate documents and if the arrangers are not agreed with the mandate documents, then you can send the mandate documents to the internal legal for modification. Once the arrangers agree on the mandate documents, then the mandate documents are sent to the borrower for the review. Advice is sent to the borrower.

Borrower Review - Mandate Docs

If the borrower is not acceptable with the mandate documents the same is sent to the internal legal for amendments along with the comments from the borrower. Cancel the application if borrower is not interested. If the borrower agrees with the mandate documents then the mandate documents are sent to all the parties for execution. Advises are sent to all the parties.

Execution Status

You can track the status of the execution of mandate documents from all the parties. You can send the fully executed documents to all the parties. Advice will be sent. With this the premandate stage is closed.