IAL Facility Type
Collateral
Term
Fund Limit
Mutual Funds as Collateral
Money Market Fund,
Fixed Income Fund,
Balanced Fund,
Equity Fund,
(In IDR & USD)
≤1 (one) year
≥IDR 100 million
per product put as collateral
Bonds Collateral
(In IDR & USD)
≤ dependent upon the term of the product put as collateral, or the shortest term if the product put as collateral is more than 1 (one)
≤ IDR 10billion
How to Calculate Daily Interest of IAL Facility.
The accumulation is based on the daily interest at the end of each month and it becomes collectible interest at the beginning of the following month.
The amount of collectible interest not paid will automatically reduce the amount of the unused IAL Facility.Daily interest of IAL Facility = Value of IAL Facility used X Interest Rate of IAL Facility X Amount of days of usage of IAL Facility / 360
Illustration of Interest Calculation.
Value of IAL Facility Rp250,000,000
Tenor of IAL Facility
12 months
Interest of IAL Facility
10%
First Month
Second Month
Value of use: Rp100,000,000
Remaining value of IAL Facility: Rp150,000,000
Interest on usage of IAL Facility
= Rp100,000,000 x 10% x 30 days
360
= Rp833,333
If the collectible interest is not paid, then the value of IAL Facility in the 2nd month is:
Remaining value of IAL Facility - collectible interest
Rp150,000,000 - Rp833,333
= Rp149,166,667
Loan To Value ("LTV") Ratio :
Maximum
70 %
of the total investment funds in Mutual Funds / Bonds / Structured Products
During the period of the provision of IAL Facility, the Bank will monitor LTV (Loan to Value) so that it is within the specified limit at all times
LTV = Facility limit or total outstanding (Whichever is higher) X 100% / Market value of collateral
Two possibilities that require a follow-up from you:
2. If LTV is 75% < LTV <80%, Collateral Shortfall will occur.
Composition of Products Put as Collateral
%
Value (Rp)
First Day
Mutual Fund A
300,000,000
Mutual Fund B
400,000,000
Mutual Fund C
300,000,000
Total Market Value of Products Put as Collateral
1,000,000,000
Loan to Value
70%
Maximum Value of Loan Facility (fixed during the facility tenor)
700,000,000
Value used (assumption)
300,000,000
Composition of Products Put as Collateral
%
Value (Rp)
Second Day*
Mutual Fund A
250,000,000
Mutual Fund B
350,000,000
Mutual Fund C
300,000,000
Total Market Value of Products Put as Collateral
900,000,000
Loan to Value
70%
Maximum Value of Loan Facility (fixed during the facility tenor)
700,000,000
Value used (assumption)
300,000,000
*There is market movement of the products put as collateral
Calculation of Status
Status of IAL Facility on the second day
700,000,000
900,000,000
X
100%
=
77.78% Collateral Shortfall
You have 4 (four) business days (T+4) after notice from the Bank to do a follow-up as stated below. Otherwise, the Bank may liquidate the collateral on the following 1 (one) business day.
Status
LTV
Duration of Settlement
Collateral Shortfall
75% < LTV <80%
4 business days
FOLLOW-UP
If the IAL Facility has not been fully used
If the IAL Facility has been fully used
To lower the limit of the IAL Facility but the new limit must be above the total balance of the IAL Facility To lower the limit of the IAL Facility and pay for the excess of the IAL Facility if the new limit is below the balance of the IAL Facility. To increase the value of collateral by putting other investment products owned as collateral. To increase the value of collateral by putting other investment products owned as collateral. To lower the limit of IAL Facility and pay for the excess of the Facility IAL according to a new limit.
2. If LTV is ≥85%, Forced Selling will occur.
Composition of Products Put as Collateral
%
Value (Rp)
First Day
Mutual Fund A
300,000,000
Mutual Fund B
400,000,000
Mutual Fund C
300,000,000
Total Market Value of Products Put as Collateral
1,000,000,000
Loan to Value
70%
Maximum Value of Loan Facility (fixed during the facility tenor)
700,000,000
Value used (assumption)
300,000,000
Composition of Products Put as Collateral
%
Value (Rp)
Second Day
Mutual Fund A
250,000,000
Mutual Fund B
350,000,000
Mutual Fund C
250,000,000
Total Market Value of Products Put as Collateral
850,000,000
Loan to Value
70%
Maximum Value of Loan Facility (fixed during the facility tenor)
700,000,000
Value used (assumption)
300,000,000
*There is market movement of the products put as collateral
You have 2 (two) business days (T+2) after notice from the Bank to do a follow-up as stated above. Otherwise, the Bank may liquidate the collateral on the next 1 (one) business day. The proceeds from liquidation of the collateral due to Forced Selling is directly deposited to the loan account and if there is an excess, it will be credited to your account.
Status
LTV
Duration of Settlement
Forced Selling
≥ 80%
2 business days
EXCESS USAGE
In the case of usage of facility exceeding the LTV limit at 70%, you will be given 15 (fifteen) business days (T+15) after notice from the Bank to take action. The bank will immediately liquidate the collateral in the following 1 (one) business day (T+16) if there is no follow-up from you.
Status
Duration for Settlement
Duration of Settlement
Excess Usage
T+15 business days
Pay the excess in usage of IAL Facility
