HSBC France and the Bank of New York Mellon (BNY Mellon) have signed up to Euroclear Bank’s LoanReach service for syndicated loan transactions. About 15 clients are currently testing LoanReach and four are now using the service.
LoanReach offers a free-of-charge service to allocate unique identifying codes for syndicated loans. It also provides a centralised loan database, as well as customised reporting possibilities for agent and lender portfolios. LoanReach’s portfolio reconciliation feature enables agents and lenders to reduce their operational workload and risks, while maintaining the confidentiality of loan information. A key purpose is to decrease the number of reconciliation failures between agents and lenders, resulting in more efficient and accurate processing of cash-related operations, which benefits lenders and agents alike.
Corinne Léger-Licoine, head of global banking, agency and operations at HSBC France, said: “We have been very active in the LoanReach consultation groups over the past few years. We are convinced that this automated solution to process syndicated bank loan transactions will greatly benefit our counterparties and us. As a lender, we believe that LoanReach will make the market for syndicated loans more orderly in terms of data flows, operational efficiency, risk control and cost containment.”
Future LoanReach enhancements include delivery-versus-payment (DvP) settlement for primary market syndicated loan transactions, tax services, interest payments, the automation of agent notifications and the use of loans as collateral to support refinancing transactions.
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