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Common Terms Agreement for Qatar

Common Terms Agreement Template for Qatar

A Common Terms Agreement governed by Qatar law serves as the principal document in syndicated financing transactions, establishing the core terms and conditions that apply across all facility agreements. It incorporates provisions compliant with Qatar's Civil and Commercial Codes, while potentially including Shariah-compliant structures where required. The agreement standardizes key provisions such as representations, warranties, covenants, and events of default, ensuring consistent terms across multiple finance documents while respecting Qatar's legal framework and regulatory requirements.

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Common Terms Agreement

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What is a Common Terms Agreement?

The Common Terms Agreement is a foundational document used in complex financing transactions, particularly prevalent in project finance and syndicated lending arrangements in Qatar. It consolidates common terms that apply across multiple finance documents, reducing negotiation complexity and ensuring consistency. Subject to Qatar law, it must comply with both the Qatar Civil Code and Commercial Code, while often incorporating provisions to accommodate both conventional and Islamic financing structures. The agreement typically includes detailed terms regarding facilities, conditions precedent, representations, warranties, covenants, and events of default, serving as the primary reference point for all lenders and finance parties involved in the transaction. Its use is particularly important in large-scale projects where multiple lenders and multiple facilities are involved, providing a unified framework for the entire financing structure.

What sections should be included in a Common Terms Agreement?

1. Parties: Identification of all parties to the agreement, including borrowers, lenders, agents, and security trustees

2. Background: Context of the transaction, including the purpose of the financing and overall structure

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

4. The Facilities: Description of the various credit facilities being made available

5. Purpose: Permitted uses of the facilities and any restrictions on use of proceeds

6. Conditions Precedent: Conditions that must be satisfied before utilization of the facilities

7. Representations and Warranties: Standard representations and warranties given by the borrower and other obligors

8. Information Undertakings: Obligations to provide financial and other information to the lenders

9. Financial Covenants: Financial ratios and tests that the borrower must maintain

10. General Undertakings: General positive and negative covenants applicable to the borrower and other obligors

11. Events of Default: Circumstances that would trigger default and enforcement rights

12. Changes to Parties: Provisions regarding transfers, assignments, and novations

13. Administration: Role and duties of facility agent and other administrative provisions

14. Payment Mechanics: Procedures for making payments and calculating interest

15. Set-off and Calculations: Rights of set-off and basis for financial calculations

16. Notices: Methods and requirements for giving notices under the agreement

17. Governing Law and Enforcement: Choice of law and jurisdiction provisions

What sections are optional to include in a Common Terms Agreement?

1. Accordion Facilities: Provisions for increasing facility amounts, used when future expansion is contemplated

2. Islamic Financing Provisions: Specific provisions for Shariah-compliant facilities, required when Islamic financing is included

3. Intercreditor Provisions: Required when multiple classes of creditors are involved, establishing priority and voting rights

4. Security Provisions: Detailed security arrangements, used when security is not documented separately

5. Tax Gross-Up and Indemnities: Detailed tax provisions, necessary when cross-border elements exist

6. Green Loan Provisions: Specific provisions for green or sustainable financing, used for ESG-linked facilities

7. Development Finance Institution Provisions: Special requirements when DFIs are involved as lenders

What schedules should be included in a Common Terms Agreement?

1. Schedule 1 - Initial Conditions Precedent: Detailed list of documents and conditions required before first utilization

2. Schedule 2 - Ongoing Conditions Precedent: Conditions required for subsequent utilizations

3. Schedule 3 - Utilization Request: Form of drawdown notice

4. Schedule 4 - Form of Transfer Certificate: Template for transferring commitments between lenders

5. Schedule 5 - Form of Compliance Certificate: Template for periodic compliance certification

6. Schedule 6 - Financial Covenants Calculations: Detailed methodology for calculating financial covenants

7. Schedule 7 - Form of Accession Deed: Template for new parties joining the agreement

8. Schedule 8 - Existing Security: List of existing security interests

9. Schedule 9 - Timetables: Timeline for administrative actions and payments

10. Schedule 10 - Form of Assignment Agreement: Template for assigning rights under the agreement

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok成人版 | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Qatar

Document Type

Agreement Contract

Cost

Free to use
Relevant legal definitions


































































Clauses











































Relevant Industries

Infrastructure

Energy

Real Estate

Construction

Transportation

Healthcare

Education

Industrial

Telecommunications

Oil & Gas

Renewable Energy

Mining

Utilities

Manufacturing

Hospitality

Relevant Teams

Legal

Finance

Treasury

Compliance

Risk Management

Corporate Finance

Project Finance

Investment Banking

Credit Administration

Operations

Relevant Roles

Chief Financial Officer

Finance Director

Treasury Manager

Legal Counsel

General Counsel

Project Finance Manager

Relationship Manager

Credit Risk Manager

Compliance Officer

Investment Manager

Transaction Manager

Corporate Finance Manager

Facility Agent Representative

Security Trustee Manager

Project Director

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, 聽Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination, 聽Severance Pay, Governing Law, Entire Agreemen

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