Commercial Loan Term Sheet Template for Qatar

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Key Requirements PROMPT example:

Commercial Loan Term Sheet

"I need a Commercial Loan Term Sheet under Qatar law for a secured facility of QAR 50 million to finance a real estate development project, with drawdown expected by March 2025 and including both conventional and Islamic finance options."

Document background
The Commercial Loan Term Sheet is a crucial preliminary document used in Qatar's banking sector to establish the framework for commercial lending transactions. It serves as the foundation for negotiating and documenting loan facilities, capturing key commercial terms, conditions, and requirements that will later be expanded into a detailed facility agreement. This document type is particularly important in Qatar's sophisticated financial market, where both conventional and Islamic banking principles must often be considered. The term sheet typically precedes the main facility agreement and outlines essential elements such as facility amount, pricing, tenor, security structure, and key covenants while ensuring compliance with Qatar Central Bank regulations and local banking practices. It is commonly used for corporate borrowing, project finance, real estate development, and other commercial funding requirements within Qatar's jurisdiction.
Suggested Sections

1. Parties: Identification of Lender(s) and Borrower(s) with full legal names and registration details

2. Background: Brief context of the proposed facility and its purpose

3. Definitions: Key terms used throughout the term sheet

4. Facility Type and Purpose: Description of the loan type and permitted uses

5. Facility Amount: Principal amount of the loan and currency

6. Availability Period: Period during which the facility can be drawn

7. Interest/Profit Rate: Applicable interest rate or profit rate structure, including base rate and margin

8. Repayment Terms: Schedule and method of repayment

9. Fees: All applicable fees including arrangement, commitment, and processing fees

10. Security Structure: Overview of required security and guarantees

11. Key Financial Covenants: Primary financial ratios and requirements to be maintained

12. Conditions Precedent: Key conditions to be satisfied before drawdown

13. Representations and Warranties: Basic representations required from the borrower

14. Key Undertakings: Essential positive and negative covenants

15. Events of Default: Principal events triggering default

16. Governing Law: Confirmation of Qatar law as governing law

17. Binding Effect: Statement on whether the term sheet is binding or non-binding

Optional Sections

1. Islamic Finance Structure: Required if the facility needs to be Shariah-compliant, detailing the Islamic structure used (e.g., Murabaha, Ijara)

2. Syndication Provisions: Include for larger facilities that may be syndicated, detailing syndication rights and process

3. Currency Provisions: Required for multi-currency facilities or cross-border transactions

4. Hedging Requirements: Include if mandatory hedging is required for interest rate or foreign exchange risk

5. Security Sharing: Required for transactions involving multiple creditors or facilities

6. Tax Provisions: Include for cross-border transactions or where specific tax structures are relevant

7. Related Party Transactions: Include where borrower has significant related party dealings requiring control

8. Regulatory Compliance: Include specific sections for regulated borrowers or specific industry requirements

Suggested Schedules

1. Schedule 1 - Facility Summary: Detailed breakdown of facility amounts, sub-limits, and pricing

2. Schedule 2 - Repayment Schedule: Detailed amortization schedule if applicable

3. Schedule 3 - Security Details: Comprehensive list and description of all security items

4. Schedule 4 - Financial Covenants Calculations: Detailed calculation methodology for financial covenants

5. Schedule 5 - Conditions Precedent: Complete list of required conditions precedent documentation

6. Schedule 6 - Form of Drawdown Notice: Template for drawdown requests

7. Schedule 7 - Key Documents List: List of required documentation for facility completion

8. Schedule 8 - Contact Details: Key contact information for all parties

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 and Financial Services

Real Estate and Construction

Oil and Gas

Manufacturing

Retail and Commercial

Healthcare

Education

Hospitality and Tourism

Technology and Telecommunications

Transportation and Logistics

Infrastructure Development

Energy and Utilities

Industrial and Mining

Trading and Distribution

Professional Services

Relevant Teams

Legal

Finance

Treasury

Risk Management

Compliance

Corporate Banking

Credit Analysis

Islamic Banking

Operations

Corporate Finance

Commercial Banking

Investment Banking

Transaction Management

Documentation

Regulatory Affairs

Relevant Roles

Chief Financial Officer

Finance Director

Treasury Manager

Corporate Banking Manager

Relationship Manager

Credit Risk Manager

Legal Counsel

Compliance Officer

Financial Controller

Investment Manager

Corporate Finance Manager

Loan Officer

Islamic Banking Specialist

Transaction Manager

Credit Analyst

Senior Banker

Banking Operations Manager

Risk Assessment Officer

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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