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Loan Facility Letter
"I need a Loan Facility Letter for a UAE-based manufacturing company seeking AED 10 million working capital facility, with quarterly repayments over 3 years and personal guarantee from company shareholders."
1. Date and Address Block: Formal letter heading including date and recipient's details
2. Salutation and Reference: Formal greeting and reference to any previous discussions or applications
3. Facility Overview: Brief introduction stating the bank's agreement to provide the facility and key terms
4. Facility Amount and Type: Clear statement of the facility amount, currency, and type of facility being offered
5. Purpose: Specified purpose for which the facility may be used
6. Availability Period: Period during which the facility can be drawn
7. Interest/Profit Rate: Applicable interest or profit rate, including calculation method and payment frequency
8. Fees and Charges: All applicable fees including arrangement fees, commitment fees, and other charges
9. Repayment Terms: Repayment schedule, method, and conditions
10. Security Requirements: Details of required security, guarantees, or collateral
11. Key Conditions Precedent: Conditions that must be satisfied before facility availability
12. Key Covenants: Essential financial and non-financial covenants
13. Events of Default: Key events that would trigger default
14. Acceptance Block: Section for borrower's acceptance and execution of the letter
1. Islamic Finance Provisions: Required if the facility is Sharia-compliant, including specific Islamic structuring requirements
2. Syndication Rights: Include if the bank wishes to reserve the right to syndicate the facility
3. Insurance Requirements: Detailed section on insurance if specific insurance coverage is required
4. Special Drawdown Conditions: Include for facilities with multiple tranches or special drawdown requirements
5. Currency Conversion: Required for multi-currency facilities or if currency conversion options are offered
6. Property-Specific Terms: Include when facility is related to real estate or property financing
1. Schedule 1 - Definitions: Detailed definitions of terms used in the facility letter
2. Schedule 2 - Conditions Precedent: Complete list of required documents and conditions to be satisfied
3. Schedule 3 - Form of Drawdown Notice: Template for borrower to request drawings under the facility
4. Schedule 4 - Fee Schedule: Detailed breakdown of all fees and charges
5. Schedule 5 - Security Documents: List and forms of required security documents
6. Schedule 6 - Financial Covenants: Detailed financial covenants and calculation methodologies
7. Schedule 7 - Repayment Schedule: Detailed repayment schedule if term facility
8. Appendix A - Standard Terms and Conditions: Bank's standard terms and conditions applicable to the facility
Authors
Business Day
Conditions Precedent
Default
Default Rate
Drawdown
Drawdown Date
Drawdown Notice
Facility
Facility Amount
Facility Documents
Finance Documents
Financial Indebtedness
Financial Statements
Group
Interest Payment Date
Interest Period
Interest Rate
EIBOR
Material Adverse Effect
Obligor
Outstanding Amount
Potential Default
Prepayment
Profit Rate
Purpose
Repayment Date
Repayment Schedule
Security
Security Documents
Security Provider
Secured Assets
Subsidiary
Tax
UAE
UAE Dirham
Utilisation
Facility Period
Governing Law
Guarantor
Jurisdiction
Loan
Margin
Material Adverse Change
Permitted Security Interest
Secured Obligations
Security Interest
Security Agent
Specified Purpose
Transaction Documents
Purpose
Availability
Interest/Profit Rate
Fees and Charges
Repayment
Prepayment
Security
Conditions Precedent
Representations and Warranties
Covenants
Information Undertakings
Financial Covenants
General Undertakings
Events of Default
Remedies
Assignment and Transfer
Costs and Expenses
Payments
Set-off
Notices
Confidentiality
Governing Law
Jurisdiction
Islamic Finance Compliance
Force Majeure
Amendment and Waiver
Severability
Entire Agreement
Counterparts
Tax
Currency Indemnity
Increased Costs
Market Disruption
Anti-Money Laundering
Sanctions Compliance
Banking & Financial Services
Real Estate & Construction
Manufacturing & Industrial
Trading & Commerce
Healthcare
Hospitality & Tourism
Technology & Communications
Retail & Consumer Goods
Energy & Utilities
Transportation & Logistics
Professional Services
Education
Legal
Finance
Treasury
Compliance
Risk Management
Corporate Banking
Credit
Operations
Islamic Banking
Company Secretarial
Business Development
Chief Financial Officer
Finance Director
Treasury Manager
Legal Counsel
Corporate Lawyer
Compliance Officer
Credit Risk Manager
Relationship Manager
Banking Operations Manager
Financial Controller
Company Secretary
Business Development Manager
Investment Manager
Corporate Banking Manager
Loan Officer
Islamic Banking Specialist
Senior Finance Manager
Credit Analyst
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