the level of Capital to cover the lending, derivatives and other banking activities (and income generating assets) as defined by Capital Requirements Regulation (EU) No. 575/2013 reflecting Basel III rules on capital measurement and capital standards. Capital adequacy represents most important financial ratio in banking sector, that central regulators always watch very closely. It is […]

big ticket loan that is provided by a number of Banks which share the revenues from the deal pro rata as well as collateral provided by the Borrower. The mutual cooperation between the participating banks is concluded in line with Inter-creditory agreement, while the Borrower is represented by the Agent, which acts as Principal Bank […]

these instruments represent widely used funding tools for Corporates, Municipals and Governments that are acknowledged Issuers of the Debt on capital markets and are widelly recognized as Bonds. These types of Securities are issued at certain face value, have fixed maturity date and bear certain Yield (e.g. 2,55% p.a. in case of fix, or a […]

a confirmation signed by the Borrower and delivered to Creditors on fulfilling all conditions and covenants and thus not being in the Default (EoD). This may be required each year as of date of certain anniversary (most likely connected with the date of loan documentation signature). Compliance certificate is considered as important part of loan […]

Conditions precedent – the set of various conditions that Borrower must fulfill in order to be able to utilize the lending products under loan contract. This typically includes extract from commercial register, corporate approvals, Signatures specimen, KYC underlying documents and naturally execution of security documents (mortgage of Property, pledge of receivables) Conditions subsequent – these […]

the set of various conditions that Borrower must fulfill in order to be able to utilize the lending products under loan contract. This typically includes extract from commercial register, corporate approvals, Signatures specimen, KYC underlying documents and naturally execution of security documents (mortgage of Property, pledge of receivables)

these are the conditions that Borrower is obliged to deliver within certain period after drawing the credit facility; this means that Bank feels comfort in receiving some minor collateral not necessarily prior the utilization of loans (for instance pledge of insurance policy or Notary deed for stocks pledge) as this form of security is also […]

Information covenants – typical set of information that each Bank needs to obtain in order to perform update of Client rating and complete the financial assessment within the annual review. Such documents may contain audited results, consolidated figures, interim figures, presentation of Compliance certificate, confirmation from state/Tax authorities on no overdue payments General covenants – […]

Credit Valuation Adjustment (CVA) is a measure of the “market value of counterparty risk” and is effectively the long term credit loss that could be expected on a counterparty’s portfolio of transactions. CVA is calculated by applying a default probability (usually derived from Credit Default Swap data or proxies) and expected recovery to the expected […]

in analogy to EoD, this is adverse situation when the Borrower is breaching more than one finance contract, as X-D was applied regardless which contract among them triggered EoD situation. This clause represents standard for more structured financing or “big tickets” deals and even including ISDA related contracts, whereas such event of Cross-default requires coordinating […]