Document background
The Fee Letter Syndicated Loan is a critical document in syndicated lending transactions, typically executed alongside the main facility agreement. It is used to document all fee arrangements between the borrower and various finance parties, keeping these commercially sensitive terms separate from the publicly available facility agreement. The document is particularly important in Hong Kong's sophisticated financial market, where complex syndicated lending structures are common. The letter details various fees including arrangement fees, commitment fees, participation fees, agency fees, and any other applicable fees, their calculation methods, and payment terms. Under Hong Kong law, while the fee letter is a separate document, it is considered part of the facility documentation and carries full legal effect. This structure is particularly useful for maintaining confidentiality of fee arrangements while ensuring enforceability.
