Undrawn Commitment
Short definition
An undrawn commitment is the unused part of a signed facility. It counts as liquidity only if it is truly drawable that day; covenants, collateral and MAC can cut it.
Detailed explanation
Split paper unused from drawable unused. Minimum-liquidity, leverage and DSCR tests can stop a draw. A commitment fee accrues on the unused balance; it is not free insurance.
An RCF near expiry turns undrawn commitment into a maturity wall. An uncommitted line is not headroom.
Why it matters for the CFO
It is the bank leg of the cash buffer. An undrawable commitment on a stress day falsifies runway.
How it is calculated
Kullanılmamış taahhüt = Tesis limiti − Çekilmiş bakiye (çekilebilir tutar ≤ bu fark)
Variables in the formula
- Undrawn: Signed limit minus drawn balance
How to read it
Drawable unused / paper unused shows flexibility. If the ratio is not 1, the limit is cosmetic.
Numerical example
Limit 150, drawn 110, covenant cap allows 20 more → paper unused 40, drawable 20 mn TL.
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Definitions are educational. They are not investment, credit or tax advice.