Document background
A Loan Agreement Term Sheet is used in the initial stages of a financing transaction to document the fundamental terms agreed between the lender and borrower. In the UAE context, this document must align with both federal and emirate-level banking regulations, as well as potentially incorporating Sharia-compliant structures where required. The term sheet serves as a roadmap for preparing the full facility documentation, capturing key commercial terms such as facility amount, pricing, tenor, security package, and major conditions precedent. While typically non-binding except for certain specific provisions (such as confidentiality and exclusivity), the Loan Agreement Term Sheet is crucial for obtaining initial credit approvals and forms the basis for the lender's counsel to prepare detailed facility documentation.
