Participations Sold are a type of financing utilized above all in international large-scale lending when the order amount or business volume is too high for an individual institution or if this could lead to one-sided business risks. The bank that provides the participation (participation provider) acts as lead manager in the syndicate and distributes the risk arising from the underlying transaction to several participants.

For customers, the benefit of this form of financing is that they merely need to communicate with the lead manager and will be granted uniform conditions, saving the need to contact and establish business relations with a large number of different institutions with possibly different terms and conditions.

The “Participations Sold” panels are included in the opening transactions of the Import L/C, Export L/C and Guarantee and Advances business sectors and are used to capture the participants, who can be defined via the roles TP0 to TP9. Only one part of the participation is entered for each participants, with the total amount not exceeding 100% of the risk amount.

Partial participations can be changed using the amendment transactions. Participations are discharged with the aid of the payment transactions under LI / BR and LE / BE, and the payment transactions of a guarantee or advance. Participations are not paid in the application, i.e. besides managing the amounts in the table with the respective CBS bookings, the business logic remains unchanged.

Fees can be defined and settled for the payment of each participants's proportion.

To facilitate maintainence of Participation details per customer and to use the same in the respective business contracts, the transaction Maintaining Participation Sold Facilities is available. This eases up the effort to manually input participation details by maintaining a pre-configured facility setup.

This can be activated by enabling the facility configuration checkbox in Maintaining System Configuration.

Once facility configuration is activated and facility maintained, business transactions (for example Creating a Guarantee/Standby) will allow to select a pre-configured facility which will automatically fill in the participant details in the “Participation Sold” panel and have corresponding liability bookings automatically created. Manual changes of the participants or their share is not possible if facility configuration is used. Also, when a facility configuration is changed, contracts linked to the changed facility are not updated automatically.

Details on creation of messages can be found under DOCEOT Messages.

By default, participations can be processed in the following transactions:

• Advising / Confirming
• Advise an Amendment
• Internal Amendment
• Send, Accept and Settle Documents
• Opening a Transfer L/C
• Amending
• Send, Accept and Settle Documents

• Opening an Import L/C
• Amending
• Internal Amendment
• Send, Accept and Settle Documents

• Creating a Guarantee/Standby
• Amending
• Internal Amendment
• Internal Amendment

• Advancing a Document Set
• Settling an Advance
• Repayment / Recourse

The “Participations Sold” panel displays the participants involved together with the relevant amounts.

Among other things, the “Details” panel features the details for calculating the commission that is forwarded to the participant.