WATC’s Corporate Treasury Services team is able to provide advice on debt management strategies and appropriate products to meet client needs. Clients are required to execute an appropriate lending agreement with WATC to access these products, and the terms and conditions applicable to the various products are contained in clients’ lending agreements. Lending products available to clients from WATC are:
- Liquidity lending
- Term floating rate lending
- Term fixed rate lending
- Debt Portfolio Manager (DPM) Service
WATC also offers a Working Capital Facility to assist clients in managing their short-term cash requirements by combining a low cost overdraft facility with an interest earning cash management facility within the same account.
Liquidity lending allows clients to borrow for terms as short as one day to a maximum of one year. Interest is calculated on a simple interest basis and is payable with the principal on maturity.
The interest rate applicable to liquidity borrowings is determined at the outset of the loan.
Term floating rate (TFR) lending
A longer term borrowing instrument that has variable interest payments. The interest rate payable on the borrowing is reset at regular periods over its term to maturity. The interest rate payable is set at a margin to the Bank Bill Swap Reference Rate (BBSW). The BBSW rate chosen depends on the period for which the rate is to be fixed (e.g. generally quarterly or semiannual). The principal can be structured to be repaid on maturity or on a fixed repayment schedule over the life of the loan.
Term fixed rate lending
Borrowing with a fixed interest rate for terms from six months to ten years or longer, as may be agreed. Includes:
- Fixed rate bonds – interest only loans, where the borrower makes a series of regular fixed interest payments over the term of the loan, with the full amount of the principal to be repaid on maturity
- Amortising loans – loans with equal fixed payments of principal and interest over the term of the loan, with the full amount of the principal repaid by maturity
- Structured loans – loans with tailored fixed capital repayment schedules structured to suit individual specific requirements
- Zero coupon loans – loans for terms greater than one year where all interest and principal is payable on maturity.
Debt Portfolio Manager (DPM) Service
The Debt Portfolio Manager (DPM) is a passive debt management service designed to effectively manage interest rate risk in a manner appropriate to a client’s individual business requirements. The DPM service is administratively efficient, automatically allocating a client’s new debt and refinancing maturing debt, within separate portfolio(s) of term fixed rate and / or term floating rate loans, in accordance with the interest rate risk management settings established by the client. WATC can also assist clients in determining the interest rate risk management settings most appropriate for their business. <read more>
If you would like to contact us to discuss any aspect of our product or service offerings, contact details for our team members are available on our Corporate Treasury Services team page, or you can email the team at firstname.lastname@example.org.