Document background
The Credit Commitment Letter is a crucial document in Belgian corporate finance transactions, typically issued following initial credit negotiations and prior to the execution of full facility documentation. It represents a formal commitment from a financial institution to provide specified credit facilities, subject to conditions. Used primarily in corporate lending, acquisition financing, and project finance transactions, the document must comply with Belgian banking regulations and financial services laws. The letter outlines essential terms including facility amount, purpose, pricing, key conditions precedent, and major covenants, serving as a bridge between initial term sheet negotiations and final documentation. Under Belgian law, while not the final credit agreement, the commitment letter can create binding obligations on the parties, particularly regarding key commercial terms and exclusivity provisions.
