Loan Facility Letter Generator for United Arab Emirates

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Key Requirements PROMPT example:

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."

Document background
The Loan Facility Letter is a critical document in UAE banking and finance transactions, used when a financial institution agrees to provide financing to a borrower. It must be drafted in compliance with UAE Federal Law No. 18 of 1993 (Commercial Transactions Law) and UAE Federal Law No. 14 of 2018 (Central Bank Law), among other relevant regulations. The document serves as both an offer of finance and, upon acceptance, a binding agreement between the parties. It typically includes comprehensive details about the facility, including amount, purpose, interest/profit rate, security requirements, conditions precedent, and key covenants. In the UAE context, special attention must be paid to interest rate restrictions and the potential need for Sharia-compliance, depending on the nature of the transaction and the parties involved.
Suggested Sections

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

Optional Sections

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

Suggested Schedules

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

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions
Clauses
Relevant Industries

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

Relevant Teams

Legal

Finance

Treasury

Compliance

Risk Management

Corporate Banking

Credit

Operations

Islamic Banking

Company Secretarial

Business Development

Relevant Roles

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

Industries
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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