Principal Repayment

Debt instruments repay the principal according to the repayment schedule.

The principal MUST be repaid according to a principal repayment schedule.

In the case of an on-chain payment agent, the D-ASA MUST repay the principal to the Investor’s Payment Addresses.

Bullet Schedule

If the debt instrument has a bullet principal repayment schedule, the principal MUST be paid entirely at the maturity date using the pay_principal method.

If the D-ASA has coupons, the principal MUST NOT be paid if there is any due coupon still to be paid.

Amortizing Schedule

If the debt instrument has an amortizing principal repayment schedule, the principal MUST be repaid along with the fixed number of coupons, according to the principal amortization (see Amortization section), using the pay_coupon method.

The first coupon due date corresponds to \([PRANX]\).

The D-ASA unit value MUST be updated according to the outstanding principal.

It is RECOMMENDED to use an ACTUS interest calculation base \([IPCB]\).

A reference implementation SHOULD calculate interest on the outstanding principal.

A reference implementation SHOULD restrict the amortizing rates updatability.

📎 EXAMPLE

Let’s have a D-ASA denominated in EUR, with a principal of 1M EUR and a minimum denomination of 1,000 EUR, 5 coupons, and an even amortizing schedule (20% amortizing rate). The D-ASA has 1,000 total units. The D-ASA initial unit value is 1,000 EUR. The 1st coupon pays both the interest (according to the coupon rates) and 20% of the principal (according to amortizing rates). The D-ASA outstanding principal is 800k EUR. The D-ASA unit value is 800 EUR.

📎 EXAMPLE

Let’s have a D-ASA denominated in EUR, with a principal of 1M EUR and a minimum denomination of 1,000 EUR. The D-ASA originally had 1,000 total units (worth 1,000 EUR each) in circulation. A partial repayment of 500k EUR (50% of the original principal) must be executed pro-rata to all investors. A single amortizing rate of 5,000 bps is used. After the partial repayment, the D-ASA still has 1000 circulating units (worth 500 EUR each).