Document background
This Facility Agreement Template is designed for use in the United Arab Emirates, providing a standardized framework for documenting financial facilities while ensuring compliance with UAE laws and regulations. The template is suitable for various types of facilities including term loans, revolving facilities, and multipurpose facilities, and can be adapted for both conventional and Islamic financing structures. It incorporates all essential provisions required under UAE law, including Central Bank requirements and local market practice, while maintaining international banking standards. The document addresses key areas such as facility terms, security requirements, conditions precedent, representations and warranties, covenants, and events of default, all specifically tailored to the UAE legal environment. This template serves as a starting point for financial institutions and corporate entities engaging in lending transactions within the UAE jurisdiction.
