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Loan Facility Agreement for Qatar

Loan Facility Agreement Template for Qatar

A comprehensive financing agreement governed by Qatar law that establishes the terms and conditions for a credit facility between a lender and borrower. The agreement incorporates both conventional banking practices and Islamic finance principles, ensuring Sharia compliance while providing detailed provisions for facility amount, profit rate, repayment terms, security arrangements, and obligations of all parties. It includes specific provisions required under Qatar law, including compliance with Qatar Central Bank regulations and local commercial laws, while addressing both civil law and Islamic finance requirements unique to the Qatar jurisdiction.

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Loan Facility Agreement

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What is a Loan Facility Agreement?

The Loan Facility Agreement is a crucial document used in Qatar for establishing formal lending arrangements between financial institutions and borrowers. This agreement type must comply with Qatar's unique legal framework, which combines civil law principles with Islamic finance requirements. The document is essential when a borrower seeks to obtain financing facilities from a lender, whether for general corporate purposes, specific projects, or asset acquisition. The agreement details all aspects of the facility, including drawdown mechanics, profit calculation (rather than conventional interest), repayment terms, and security arrangements. Given Qatar's legal system, the Loan Facility Agreement must incorporate specific provisions ensuring Sharia compliance while maintaining commercial effectiveness, including appropriate profit rate structures and prohibited transaction restrictions.

What sections should be included in a Loan Facility Agreement?

1. Parties: Identification of the lender(s), borrower(s), and any other parties to the agreement

2. Background: Context of the facility and purpose of the loan

3. Definitions and Interpretation: Definitions of terms used in the agreement and rules of interpretation

4. The Facility: Details of the facility amount, purpose, and availability

5. Conditions Precedent: Conditions that must be satisfied before drawdown

6. Drawdown: Procedures and requirements for utilizing the facility

7. Repayment: Terms of repayment including schedule and method

8. Profit Rate and Fees: Profit rate (compliant with Sharia), calculation methods, and applicable fees

9. Representations and Warranties: Statements of fact and assurances given by the borrower

10. Information Undertakings: Borrower's obligations to provide financial and other information

11. General Undertakings: Borrower's general operational and business commitments

12. Events of Default: Circumstances constituting default and consequences

13. Changes to Parties: Rules for assignment and transfer of rights and obligations

14. Payment Mechanics: Payment procedures, timing, and currency provisions

15. Notices: Communication methods and contact details

16. Governing Law and Jurisdiction: Qatar law as governing law and jurisdiction provisions

What sections are optional to include in a Loan Facility Agreement?

1. Security: Required when the facility is secured, detailing the security package and enforcement rights

2. Guarantee: Required when there are guarantors, detailing guarantee terms and obligations

3. Syndication Provisions: Required for syndicated facilities, covering relationship between multiple lenders

4. Islamic Finance Provisions: Detailed Sharia compliance provisions if structured as an Islamic facility

5. Tax Provisions: Detailed tax provisions if cross-border elements or specific tax considerations apply

6. Increased Costs: Provisions dealing with regulatory changes affecting lenders' costs

7. Market Disruption: Provisions addressing market disruption events

8. Multi-currency Provisions: Required if facility can be drawn in multiple currencies

What schedules should be included in a Loan Facility Agreement?

1. Schedule 1 - Conditions Precedent: Detailed list of required documents and conditions

2. Schedule 2 - Form of Drawdown Request: Template for borrower to request facility utilization

3. Schedule 3 - Repayment Schedule: Detailed repayment dates and amounts

4. Schedule 4 - Form of Compliance Certificate: Template for periodic compliance certification

5. Schedule 5 - Financial Covenants: Detailed financial covenants and calculations

6. Schedule 6 - Transfer Documents: Forms for transferring facility participations

7. Schedule 7 - Security Documents: List and copies of security documents if applicable

8. Schedule 8 - Existing Security: Details of any permitted existing security

9. Schedule 9 - Form of Accession Deed: Template for new parties joining the agreement

10. Schedule 10 - Profit Rate Calculation: Detailed profit rate calculation methodology

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

Banking and Financial Services

Islamic Finance

Commercial Real Estate

Infrastructure and Construction

Energy and Resources

Manufacturing

Healthcare

Telecommunications

Retail and Consumer

Transportation and Logistics

Education

Hospitality

Relevant Teams

Legal

Finance

Treasury

Compliance

Risk Management

Corporate Finance

Islamic Banking

Credit

Operations

Business Development

Relevant Roles

Chief Financial Officer

Finance Director

Treasury Manager

Legal Counsel

Compliance Officer

Risk Manager

Islamic Finance Specialist

Corporate Finance Manager

Banking Relationship Manager

Credit Risk Officer

Financial Controller

Company Secretary

Business Development Director

Project Finance Manager

Loan Officer

Industries








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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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