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Redemption Premium on Non. Convertible Bond (Securities Module )

Dear SAP Mentors ,

We have a scenario for NCD Bond where there is an agreed IRR and a coupon rate. The difference between the agreed IRR and coupon rate is paid at the time of maturity as redemption premium. We have taken the product type for fixed interest bond. Could any one suggest how to map this scenario in SAP treasury

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3 Answers

  • Feb 07, 2017 at 02:27 PM

    Hi Sourabh,

    Use Condition Type 118 -. Repayment Rate to post the premium.

    Kind regards

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  • Feb 07, 2017 at 02:41 PM

    Dear Gustavo Vazquez, Thanks for your reply ,

    My client want sap should Calculated the Redemption amount based on agreed IRR and Coupon rate

    For reference , they were using Excel formula Goal Seek option

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    But now they are expecting same from SAP

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    Former Member
    Feb 14, 2017 at 09:27 AM

    Hi Sourabh,

    This is a Standard functionality. In the Fixed interest bond, the field price (%) serves this purpose. If you give the price % as more than 100, then it will treated as premium and if you enter below 100, it will used as discount. Based on your PMP settings a separate Premium or discount flow can also be generated and the IRR / EIRR adjusts accordingly based on the premium or discount. Your final redemption adjust too.

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    Regards,

    Nikhil

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