Kickoff Lonas With Embedded Derivatives-EnG
Kickoff Lonas With Embedded Derivatives-EnG
Kickoff Lonas With Embedded Derivatives-EnG
The purpose of the discussion , of this kickoff meeting si to formalize the start of the project, to
present the project scope and benefits, to get to know the team , going to review the following
aspects:
Project scope:->corporate clients will be able to access BRD investments loans with interest rate
hedging solutions embedded , in a simplified manner compare to actual process:single contract for
loan and derivative, single settlement for loan interest payment ad derivate pay-off , simplified
accounting and reporting ,simplified administrative procedures.
->The client will access a single loan/investment contract for interest rate risk coverage products for
medium and long term investment loans.
->the scope is to implement 3 derivatives: SWAP -FIX interest loan, CAP-maximom interest rate,
COLLAR- minimum-maximum INTEREST RATE
Project objectives
->Increase investment and hedging products contribution in sales NBI.
->Simplified client access to interest rate hedging
Impacts:
->impacted clients: corporate clients accessing investment loans (on whick global exposure exceed
1.5 mil euro)
->achive 2,6 mil euro NBI from interest rate derivatives in 2027
-out of each embedded derivatives contribution 0.5 mil euro NBI per year .
In terms of budget, for framing phase, were allocated 24 k for 102 MDs out of which 15 k for BSC
area for 60 MDs and the rest for business line, infrastructure, security, reporting, processes.
In terms of planning, for framing phase we target to identify the solution, to design the process
flow, to create the technical solution , to create the macro functionalities and test strategy until 11 th
of DEC.
- Effort estimation , planning for execution phase and framing note to be completed until 15 th
of DEC to be able to propose the framing note in PRC planned for 20th of DEC.
Where we mention:Claudiu Cercel , project sponsor, Marius Stoica business manager and business
team being represented by financial markets, accounting, anti money laundering, corporate mkt,
legal , risk,corporate credit group, departments.
The next steps, as I mentioned earlier, are to identify the solution , to design the process flow, to
crate the technical solution, create the macrofuntionalities, business requirements for reporting in
order to be ready with framing note to be presented in PRC planned for 20 th of DECEMBER