Purpose

RIVO allows Corporate users to create and manage Outgoing Guarantees under configured syndication agreements.

The system validates syndicated limits, maintains participant risk exposure, and provides reporting capabilities to monitor utilization throughout the guarantee lifecycle.

This article explains how syndication is used during guarantee issuance, amendments, reductions, and reporting.

Audience

Corporate Users and Administrators responsible for Outgoing Guarantee transactions, credit limit monitoring, and syndication reporting.

1. Creating a Syndicated Guarantee

Navigate to Outgoing Guarantee → Create New.

During guarantee creation, select Syndicated under the Participant Type field.

Once selected, RIVO displays the applicable fronting banks configured under active syndication agreements.

• Lead & Fronting: The selected bank acts as the lead and issuing bank.
• Participant & Fronting: The selected bank acts as the fronting bank, and RIVO displays the associated Lead Bank.

2. Selecting the Syndicated Limit

After selecting the fronting bank, RIVO displays the applicable syndicated limit references.

If only one limit is available, it is automatically selected. If multiple syndicated limits are configured, users can select the appropriate reference.

RIVO validates the transaction against:

• Available fronting limit
• Available syndication amount
• Syndication agreement validity
• Requested issuance and expiry dates

Transactions exceeding the applicable available capacity or agreement validity cannot proceed.

3. Viewing Syndicated Limit Utilization

Navigate to My Banks → Credit Limits.

Syndicated limits are identified using a Syndicated indicator.

The limit detail page displays:

Available = Credit Limit − Planned − Utilized

The page also provides information about the associated syndication agreement.

4. Amendments and Reductions to Syndicated Guarantees

RIVO supports amendments and reductions to syndicated guarantees while ensuring that the transaction remains within the configured syndication agreement.

• Amount Increase: Validates the available fronting limit and syndication amount before allowing the increase.
• Amount Decrease: Recalculates participant risk exposure based on the revised guarantee amount and agreed risk percentages.
• Expiry Date Amendment: Ensures the amended expiry date does not exceed the syndication agreement expiry date.
• Reduction: Adjusts the remaining liability and participant risk exposure based on the reduction amount. The reduced amount is released back to the applicable fronting limit.

The updated utilization and risk exposure are reflected in the relevant limit and syndication reports. Existing transaction workflows and history logging remain unchanged.

5. Syndicated Limits with Umbrella Structures

Syndicated limits can also be configured with an Umbrella Limit structure.

When an umbrella structure is active, the limit displays both Syndicated and Umbrella indicators.

The limit detail page provides a breakdown of:

• Direct: Amount belonging directly to the limit owner.
• Umbrella: Amount associated with units participating in the umbrella structure.
• Total: Combined Direct and Umbrella values.

This breakdown is available for Planned, Utilized, and Available amounts.

6. Syndication Report

Navigate to Reports → Applicant → Syndicated.

The Syndication Report provides an overview of syndicated facility utilization and risk-sharing information.

Users can filter the report by Corporation, Bank, and Syndicated Limit Reference.

Fronting Bank Utilization

Displays each fronting bank's limit, planned amount, utilization, and available balance.

Users can drill down to view the underlying transactions contributing to utilization.

Participant Risk Exposure

Displays participating banks and their agreed and actual risk exposure.

The report includes information such as:

Users can switch between available reporting views and drill down to related transaction details.

Where an umbrella structure applies, the report also includes Direct, Umbrella, and Total utilization information.

Article 2: For syndication setup and maintenance, refer to [Syndication Management].