Private Placement (Bonds)

Created by Elin Stenrud, Modified on Tue, 23 Jan 2024 at 10:56 AM by Catharina Hansson

The Bond type Private Placement makes it possible to have an owner register for the different investors and keep track on all historical changes and create coupon payment to each investor. All realised and unrealised accounting will be based on the total Private Placement Bond and not on each investor. 

 

First step is to add the investors in Master Data as Company, select Company Usage: Private Placement in order to show the investor in the drop-down list. 


The email address needs to be filled in, if the investors should be emailed a distribution report on payment advice. 


Fill in the bank account that will receive the payment. If the payment shall be to an ABA No and shall be sent as a Fed Wire payment, the ABA No is filled in the field Sort Code under Bank Accounts and also USABA is chosen under Clearing Institute field.


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Next step is to enter the Bond instrument in Bond Definition. When Bond type Private Placement is chosen, the tab Register of Investors are shown.

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In Register of Investors the total Program Amount is shown at the top.

In the drop-down list Investor, all the configured investors are shown. The bank accounts that are registered are shown in the drop-down list of Bank Account. From Date is the date that the investor bought their share. To Date should only be filled in when the investor has sold their share, otherwise left blank. 

 

Serial Number is the specific number for that transaction. 

Payment Reference, click and a popup is shown. Enter the specific payment reference (max 140 characters). Note, if the same investor has invested in more than one Private Placement and the payment should be netted, the same Payment Reference needs to be added. 


Please observe! If a new investor is added on a current bond (another investor has sold partly or all of its investment to an other investor) the coupons need to be regenerated to update the new investor's part of the cash flows and repayment, and the correct payment instructions for this investor are also updated. 


You only need to regenerate the coupons from the current coupon date, i.e. the start date of the interest period or the date when the change occur. Then the next coupon payment date will have the right investors and payment instructions.   

 

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By default, a filter is set in the view Register of Investors. If unticked, all history will be shown.

So in the picture (row1) Investor 2 sold 5 MUSD with the Serial No 'a2' at 2023-03-09 

Investor 1 bought 4 MUSD 2023-03-09 with Serial No 'b2' and Investor 2 bought 1 MUSD with Serial No 'b3'

 

So Serial No 'a2' has been split up to 'b2' and 'b3'.

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