Misys, the global applications software and services provider, has agreed the purchase of eLoancoordinator™, a proprietary internet-based bookbuilding (US: bookrunning) platform for the primary loan market, from Dresdner Kleinwort, the investment bank of Dresdner Bank AG. The acquisition price is non-disclosed.
When Dresdner Kleinwort established eLoancoordinator in 2005 it was one of the first electronic and real-time platforms for participants in the loan syndication market. Since then it has been developed into a tool which has over 4,000 registered users and has had 250 deals executed on it. Following the purchase of the platform by Misys, it will be further developed by Misys Treasury & Capital Markets business to create a new solution branded Misys LoanCoordinator, offering substantial efficiency gains in the process of loan syndication.
The transition of current Dresdner Kleinwort users is intended to be effected in the next four to six months. Once the new Misys LoanCoordinator is fully developed and available Dresdner Kleinwort will become its first subscriber. Misys will also look to broaden the user base with other bookrunners.
Misys Loancoordinator will be available both as a standalone solution and as part of an integrated front-to-back Misys Loan IQ solution for loan syndication, agency servicing and secondary trading activities. Managed in real-time, it will provide bookrunners, borrowers and investors with comprehensive pipeline information required to track, analyse and manage syndicated loans on a single online site. It aims to reduce operation risk and boost efficiency by eliminating coordination delays, multiple emails and paper reports.
Bill Fish, Head of Global Loans at Dresdner Kleinwort, says: “eLoancoordinator was launched to enable issuers in the primary loan market to benefit from technology similar to that used in the bond markets since loan markets have taken on many characteristics of the bond market in recent years. Today it provides a common market platform for issuers, bookrunners and investors and has contributed significantly to enhancing transparency in the primary loan markets. We are confident Misys will further invest in the platform and its technology to offer an enhanced solution to users in future.”
Axel Thill, Head of eCommerce at Dresdner Kleinwort comments: “Following the success of our award winning eBookbuilding platform on the bond side, I am proud to see that a Dresdner Kleinwort proprietary development, once adapted by Misys, will become a market standard.”
Ken Katz, Global Product Manager for Misys Loan IQ, says: “This acquisition brings real value to our customers in the loan syndication market. Once the product is integrated with Misys Loan IQ, bookrunners and investors will benefit from seamless front-to-back offering giving them a view of all information on a particular loan that is needed throughout the entire loan lifecycle.
“Global loan volumes totalled almost $4trillion last year up 10% from 2005 and we are seeing a constant influx of institutional investors creating an increasing number of lenders involved in deals,” Katz adds. “So it’s clear that providing a single shared platform for borrowers, bookrunners and investors will enhance transparency, efficiencies and productivity and yield significant benefits to all parties in the primary loan market.
Misys Loan IQ is a comprehensive solution that covers the entire life cycle of a loan - from origination and deal tracking to agency servicing and secondary trading. It currently handles one third of the world’s syndicated loans and half of the world’s secondary loan trades. Misys Treasury & Capital Markets has 17 years of loan market experience and unrivalled software development expertise. It creates integrated, comprehensive solutions for financial institutions to manage their capital market activities across multiple asset classes.
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