Convertible Note

To add a Convertible Note instrument, follow the below steps:

1. Click on Add Instrument button in the top right corner of the Instrument Summary panel.

2. The Instrument Type window is displayed. Select Convertible Note from the Instrument Type dropdown list. Click Proceed.

3. The Convertible Note Details window is displayed. Enter the following details:

- Instrument Details

• Instrument Name: Specify the name of the instrument.
• Investee Company Name: Displays the name of the portfolio company associated with the instrument. This is an auto-generated field.
• Investor Type: Choose whether Fund or Co-investor is investing in the instrument.
• Investment CCY: Auto-populated field based on the portfolio company.
• Fund Name/ Co-Investor Name: Select the Fund/Co-investor name from the dropdown list.
• Fund CCY: Auto-populated field based on the selected Fund/Co-Investor.
• Instrument CCY: Select the instrument currency.
• Total Commitment: Specify the total amount of fund committed in the instrument.
  

- CN Disbursement/Acquisition Details 

• Acquisition Date: Select the date on which the bond was acquired.
• Amount: Input the amount of the bond instrument.
  
• Purchase value %: Input the percentage of bond amount acquired.
• Acquisition Amount: Displays the total acquisition amount of the bond.

- Convertible Details 

• Interest Start Date: Specify interest start date.
• Expected date of Conversion: Specify the expected date of the conversion of the instrument.
• Interest Rate Basis: Choose the interest rate basis from the dropdown list.
• Interest Payment Plan: Specify whether interest payments shall be monthly, quarterly, half-yearly, or yearly.
• Principal Repayment Plan: Specify whether principal repayments shall be monthly, quarterly, half-yearly, or yearly.
• Valuation Cap: Specify the maximum Valuation for the Convertible Note on conversion.
• Valuation Cap Currency: Specify Currency in which a valuation cap is required. 
• Interest Capitalized: Check the box to capitalize the interest.
  
• Discount Rate: Specify the discount rate.
• Cash Interest Rate: Specify the base interest rate.
• PIK Interest Rate: Specify the interest rate, if the bond is a Payment-in-kind bond.  
• TDS/WHT Rate: Specify TDS/Withholding Tax rate.
• Default Interest Rate: Specify the default rate of interest.
• Fully Diluted No: Specify the number of shares issued/outstanding on a converted basis
• Notes: Specify any details about the instrument in the Notes section.

4. Click Save.

5. To edit an instrument, click the Edit () icon in the Actions column. The Instrument Details window is displayed. Update the details and click Save.  

6. To delete an instrument, click the Delete () icon in the Actions column. The delete window is displayed. Click OK to delete the instrument record. 

7. To view an instrument, click the Instrument Name.