Document background
The Sub Loan Agreement is a critical document used in UAE financial transactions where a primary lender extends part of its facility to another borrower through a sub-lending arrangement. This structure is common in project finance, syndicated lending, and corporate financing scenarios in the UAE. The document must strictly comply with UAE Federal Law No. 5 of 1985 (Civil Code), Federal Law No. 18 of 1993 (Commercial Code), and UAE Central Bank regulations. The Sub Loan Agreement details the relationship between the sub-lender and borrower, including facility amount, purpose, drawdown mechanics, repayment terms, security arrangements, and events of default. It may also incorporate Islamic finance principles if structured as a Sharia-compliant facility. The agreement is particularly relevant in the UAE's dynamic financial market, where complex lending structures are frequently used to facilitate large-scale projects and corporate financing requirements.
