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Credit Facility Agreement Template for Saudi Arabia

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Key Requirements PROMPT example:

Credit Facility Agreement

"I need a Credit Facility Agreement under Saudi Arabian law for a Murabaha-based revolving facility of SAR 50 million to be provided to a manufacturing company, with security over receivables and machinery."

Document background
The Credit Facility Agreement is a fundamental document used in Saudi Arabian banking and finance transactions to establish formal lending relationships between financial institutions and borrowers. It is specifically designed to comply with both Saudi Arabian law and Shariah principles, making it suitable for conventional and Islamic banking structures. The agreement is typically used when a financial institution extends financing to corporate entities, detailing the facility amount, profit rate, payment terms, security arrangements, and other key conditions. It incorporates necessary compliance elements for SAMA regulations, anti-money laundering requirements, and know-your-customer procedures, while providing mechanisms for enforcement under Saudi law. The document's structure accommodates various financing purposes, from working capital to project finance, and includes appropriate Islamic financing structures such as Murabaha or Ijara where required.
Suggested Sections

1. Parties: Identification of the financial institution and borrower(s), including full legal names and registration details

2. Background: Context of the facility, relationship between parties, and purpose of the financing

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

4. Facility Details: Type, amount, purpose, and key terms of the facility, including Shariah-compliant structure

5. Conditions Precedent: Documents and conditions required before facility availability

6. Utilization: Process and requirements for drawing down the facility

7. Profit Rate and Fees: Shariah-compliant profit rate structure, fees, and payment terms

8. Repayment Terms: Schedule and mechanisms for repayment

9. Security: Details of security/collateral arrangements

10. Representations and Warranties: Statements of fact by the borrower

11. Covenants: Positive and negative undertakings by the borrower

12. Events of Default: Circumstances constituting default and consequences

13. Undertakings: General obligations of the borrower during the facility period

14. Changes to Parties: Rules regarding assignment and transfer rights

15. Notices: Communication procedures between parties

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

Optional Sections

1. Islamic Structure Specifics: Detailed Shariah structure (Murabaha, Ijara, etc.) - required when using specific Islamic financing structures

2. Syndication Provisions: Required for syndicated facilities with multiple lenders

3. Currency Provisions: Required for multi-currency facilities

4. Tax Provisions: Detailed tax clauses when cross-border elements exist

5. Additional Security Rights: Required when multiple forms of security are involved

6. Regulatory Compliance: Specific regulatory requirements for certain types of borrowers or facilities

7. Force Majeure: Required for longer-term facilities or where specific risks need to be addressed

8. Personal Guarantees: When personal guarantees are part of the security package

Suggested Schedules

1. Facility Terms Schedule: Detailed terms including amounts, profit rates, and payment schedules

2. Conditions Precedent Documents: List of required documents and conditions

3. Form of Utilization Request: Standard form for drawdown requests

4. Security Documents: Forms of security documents and perfection requirements

5. Shariah Structure Documentation: Specific documentation required for the Islamic financing structure

6. Fees Schedule: Detailed breakdown of all applicable fees

7. Form of Compliance Certificate: Template for periodic compliance reporting

8. Repayment Schedule: Detailed amortization or payment schedule

9. Form of Transfer Certificate: Required documentation for any transfer of rights

10. Know Your Customer Requirements: List of required KYC documentation

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

Relevant legal definitions






























































Clauses









































Relevant Industries

Banking & Financial Services

Islamic Finance

Real Estate & Construction

Manufacturing & Industrial

Trading & Commercial

Healthcare

Technology & Telecommunications

Energy & Resources

Infrastructure & Projects

Retail & Consumer

Transportation & Logistics

Relevant Teams

Legal

Finance

Treasury

Compliance

Risk Management

Corporate Banking

Islamic Banking

Credit

Operations

Company Secretarial

Corporate Finance

Relevant Roles

Chief Financial Officer

Finance Director

Treasury Manager

Legal Counsel

Compliance Officer

Risk Manager

Credit Manager

Corporate Banking Manager

Islamic Banking Specialist

Relationship Manager

Credit Analysis Manager

Corporate Finance Manager

Legal Director

Banking Operations Manager

Financial Controller

Corporate Secretary

Chief Risk Officer

Shariah Compliance Officer

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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