Amendment of a Syndication contract is associated with the amendment on the primary side (Advise an Amendment under Export LC, Amending of a Guarantee etc.). Once an MT707 (or e.g. MT767 etc.) message is received at the primary side and if the contract is connected with a Syndication, then the Syndication desk must be informed before the incoming MT707 is processed.

The Syndication Party may have to approve some of the amendment details before the transaction on the primary side (e.g. Export L/C Amendment, Guarantee etc.) is processed in DOKA-NG. The reason for this is that the increase in the L/C amount will increase the Syndication Party’s share of risk and hence approval is required by the Syndication Party for the amendment to be processed on the primary side.

In such cases, a Liability Approval for Amendment transaction is created to get approval from the Account Manager of the Syndication Party. A manually updated Offer message for Amendment (Offer Syndication Amendment) can also be created and sent to the Syndicated Party.

The Syndication Party may also refuse the amendment; in such cases the amendment on the primary side is not stopped. If the amendment includes an increase on the primary liability and if the Syndication Party participates with percentage on all liabilities with ‘Applicable for all Liabilities’ flag set (more details on the flag is explained in further chapters), then refusal of participation will generate a new percentage. The new Syndication percentage value can be entered in the field ‘New Syndication Percentage’ via transactions Liability Approval for Amendment, Offer Syndication Amendment or Amending.

If the new Syndication percentage is not equal to the current Syndication percentage, it will be defaulted to update all ‘Booked In’ unfunded Syndication liabilities. The new Syndication percentage will then apply to all existing ‘Booked In’ Syndication liabilities. The reason for updating the new percentage is that the primary liability amount has been changed due to the amendment on the primary side.

The amendment can be processed on the primary side without the approval from the Syndication Party.

A start-up warning is displayed in such cases, i.e. if the user proceeds without the approval. The warning is only shown when any of the linked Syndication deals to the parent is not closed and is open.

A warning is generated when the primary contract is being amended and if a Syndication Deal is pending under this contract, i.e. if liability approval is done and if the Deal is not yet opened. The warning appears due to the fact that the processed liability amount in the Create Offer and Creating a Syndication Deal transactions will not be in line with the amount from the Liability Confirmation transaction.

When the Amendment is processed on the primary side (e.g., Advise an Amendment, Amending, etc.), this will also trigger an Auto-registration for the Syndication Master Amendment (Amending) transaction. A checkbox “Create Autoregistration for SCTAME“ is available in the Amendment panel on the primary side that does the same when selected.

In the Syndication Master Amendment (Amending) transaction, a new combobox ‘Amendment Transaction’ is introduced in the Overview panel. The next steps in the process flow are defined by the selection in this field. The user can select one of the below options:

• Liability Approval for Amendment (Liability Approval for Amendment) – When the Syndication Master Amendment transaction is saved, this will trigger an Auto-registration for the Liability Approval for Amendment transaction for all associated deals.
• Offer Syndication Amendment (Offer Syndication Amendment) – When the Syndication Master Amendment transaction is saved, this will trigger an Auto-registration for the Offer Syndication Amendment transaction for all associated deals.
• Amending (Amending) – When the Syndication Master Amendment transaction is saved, this will trigger an Auto-registration for the Amending transaction for all associated deals.
• None of the above options- Once the Syndication Master Amendment transaction transaction is saved, this will trigger an Auto-registration for all associated Syndication Deals.

The amount of the Syndication Deal is recalculated based on the amended amount of the primary contract and is populated. As always, the calculation will vary depending on the ‘Applicable for all Liabilities’ flag. It is either depending on the Syndication percentage or based on the amount. The fields ‘old Syndication amount’, ‘amended’ and ‘new Syndication amount’ are calculated accordingly and details are defaulted in the panel.

In cases when the amount has to be reduced or if a Syndication Deal must be closed, this must be handled in the Booking Handling transaction. Below flowchart shows an overview of the amendment process: