The business module Syndication covers all transactions connected to the Syndication Master Contract [SC] and the processing of the Syndication Deal [SD] (like Liability Confirmation, Create Offer, Creating a Syndication Deal, Amending, etc.). Once the liability is approved (cf.Liability Confirmation) by the Account Manager of the Syndication Party, a Syndication Deal will be created.

An Offer message is sent (cf. Create Offer) from the Grantor to the Syndication Party once the liability is approved. The Create Offer transaction is an optional transaction which may or may not be used.
Per primary side contract, it is possible to create one Syndication Master Contract on the secondary side and one or many Syndication Deal under the Syndication Master Contract. The Syndication Master Contract contains all generic data that is common to all subsequent Syndication Deals. The Syndication Deal contains any data specific to the individual Syndication Deal.

Only one of the functionalities from the new Syndication business module and Syndication functionality that is built in the business modules LC/ Guarantees via the checkbox ‘Participation Sold’ can be selected. There is a clear differentiation between the two functionalities. It can be defined via the Maintaining System Configuration transaction.

In the Maintaining System Configuration transaction, a checkbox ‘Use Syndication Business Module’ is defined. This checkbox is set if the new Syndication business module must be used.

An error message is displayed when trying to use the old Syndication functionality if this checkbox is set.

The Syndication business module allows the Bank (grantor) to share a risk they have in their own books (such as a confirmed Export L/C) with other financial institutions.

The Export L/C in this respect is considered the parent contract on the primary side. It is also possible to link a Syndication to another parent contract on the primary side, such as a Guarantee.

The transactions processed in the Syndication business module are referred to as secondary side.

• The generic payment messages MT103/202 are allowed in all Syndication Deal transactions where the Settlement panel is available.
• The total Sum of amounts in Syndication liabilities upon saving the Liability Confirmation, Create Offer or Creating a Syndication Deal transactions must be greater than or equal to 0.
• Different styles have been introduced for Syndication liability handling. Syndication details must be checked before saving a transaction. An error message is created if any of the entry is red.
• All liabilities without any updating in the Details panel are shown in red (OK button was not clicked).
• All liabilities that have been updated are shown in green. The updates include status / amount / “percentage” changes.
• All entries that have been discarded are shown in black.

The functionality in the ‘Deal Message / Handling’ panel is centrally available and can be used in other transactions like Booking Handling, Funding Repayment, etc.

This panel includes the fields ‘Type of message’ and ‘Syndication message’ which includes ‘Full Release’, ‘Negotiation’ or ‘Partial Release’ message templates.

Based on the type of message selection, the Syndication message field can be populated from the generically defined templates. This is then used to send the message to the Syndication Party in the messages panel.

During the lifetime of a Syndication Deal, each Syndication entry will hold one of the following Syndication statuses:

• Not syndicated
• Pending (Liability Approval)
• Offered
• Rejected
• Booked in Unfunded
• Booked Out Unfunded
• Funding Requested
• Booked in Funded
• Booked Out Funded
• (Partial) Claim(s) Present
• Claim Requested
• Booked in Claim
• Booked Out Claim

Status handling per liability entry is modified manually by the user. The transaction shows the current status and defaults the status that must be changed on Edit. The possible statuses per transaction are available in the individual transaction descriptions.