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Re: Base Amount - Bilateral Facility

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Hello Marcelo.

 

We have two transactions:

 

 

1) 20000022 - Interest rate instrument

2) 20000023 - Bilateral Facility

 

 

 

If you take a look the cash flow from 20000022 transaction will see the follow base amount and interests as indicated in the variable rate:

 

 

 

03/03/2010 – Base amount 4.632,00 and Interest 0,00

03/04/2010 – Base amount 4.632,00 and Interest 2,65

03/05/2010 – Base amount 4.634,65 and Interest 0,00

03/06/2010 – Base amount 4.634,65 and Interest 4,24

03/07/2010 – Base amount 4.638,89 and Interest 3,15

 

 

 

Now let`s verify the 20000023 transaction… do you agree that the base amount to calculate the fixed rate it shoud be the BASE AMOUNT + INTEREST?

 

 

 

For example, the base amount used in 03/04/2010 it should be 4.632,00 + 2,65.

 

 

 

In the cash flow from 20000023 transaction, the base amount ignore the interests like below:

 

 

 

03/03/2010 – Base amount 4.632,00 and Interest 36,94

03/04/2010 – Base amount 4.632,00 and Interest 36,94

03/05/2010 – Base amount 4.634,65 and Interest 36,96

03/06/2010 – Base amount 4.634,65 and Interest 36,96

03/07/2010 – Base amount 4.638,89 and Interest 37,00

 

 

 

The base amount does not consider the interests from month. The interests are capitalized only to the next month. 

 

Best regards

 

Eduardo schalch


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