Co Financing Agreement Template for Malaysia

The Co-Financing Agreement is essential in transactions where multiple lenders collaborate to provide financing that may be too large or risky for a single institution to undertake alone. This document is particularly relevant in the Malaysian market for project financing, large corporate loans, and infrastructure development. It must comply with Malaysian banking regulations, including the Financial Services Act 2013 and relevant Bank Negara Malaysia guidelines. The agreement typically includes provisions for facility administration, security sharing, voting mechanisms, and default scenarios. It is structured to accommodate both conventional and Islamic financing principles, reflecting Malaysia's dual banking system, and includes specific provisions for security creation and enforcement under Malaysian law.

1. Parties: Identifies all participating financial institutions and the borrower

2. Background: Sets out the context of the financing arrangement and purpose of the agreement

3. Definitions and Interpretation: Defines key terms and establishes interpretation principles

4. Facility Amount and Purpose: Specifies the total facility amount, each lender's commitment, and permitted use of funds

5. Conditions Precedent: Lists conditions that must be satisfied before the agreement becomes effective

6. Drawdown Mechanics: Details the process for requesting and making disbursements

7. Interest and Fees: Specifies interest rates, calculation methods, and all applicable fees

8. Repayment Terms: Sets out repayment schedule, prepayment provisions, and payment mechanics

9. Security Structure: Details the security package and ranking among lenders

10. Facility Agent Provisions: Defines the role, powers, and duties of the facility agent

11. Security Agent Provisions: Outlines the security agent's role in holding and managing security

12. Lender Decision Making: Establishes voting mechanisms and majority requirements for key decisions

13. Events of Default: Lists circumstances constituting default and consequences

14. Payments and Distribution: Details payment mechanics and distribution waterfall

15. Boilerplate Provisions: Standard legal provisions including notices, amendments, governing law