Bridge Facility Agreement Template for Qatar

A Bridge Facility Agreement is essential in situations where immediate financing is required but permanent funding arrangements are not yet in place. This document, governed by Qatar law, provides a structured framework for short-term financing while ensuring compliance with both local regulations and Islamic finance principles. The agreement typically includes detailed terms for facility utilization, profit calculation methods that comply with Sharia requirements, conditions for drawdown, and specific provisions for transitioning to permanent financing. It's particularly relevant in time-sensitive transactions such as acquisitions, project financing, or refinancing situations where immediate funding is crucial. The document must adhere to Qatar Central Bank regulations and incorporate appropriate Islamic finance structures, making it suitable for the Qatar market while providing necessary protections for all parties involved.

1. Parties: Identification of the lender(s), borrower(s), and any guarantors or other relevant parties

2. Background: Context of the bridge facility, including purpose and relationship to permanent financing

3. Definitions and Interpretation: Key terms used throughout the agreement and rules of interpretation

4. The Facility: Details of the bridge facility, including amount, purpose, and availability period

5. Conditions Precedent: Conditions that must be satisfied before drawdown

6. Drawdown: Procedures and requirements for utilizing the facility

7. Interest and Fees: Profit rate (Sharia-compliant), calculation periods, and applicable fees

8. Repayment and Prepayment: Terms for repayment, including mandatory and voluntary prepayment provisions

9. Refinancing and Exit: Requirements and timeline for securing permanent financing

10. Representations and Warranties: Standard declarations made by the borrower

11. Information Undertakings: Borrower's obligations to provide financial and other information

12. General Undertakings: Borrower's positive and negative covenants

13. Events of Default: Circumstances constituting default and consequences

14. Changes to Parties: Rules for assignments and transfers

15. Administration: Administrative provisions including notices and calculations

16. Governing Law and Enforcement: Choice of Qatar law and enforcement provisions