Document background
A Credit Facility Letter is a fundamental banking document used in Hong Kong when a financial institution extends credit to a borrower. It is typically issued after initial credit assessment and approval, serving as both an offer letter and, upon acceptance, the governing document for the credit facility. The document must comply with Hong Kong banking regulations, including HKMA requirements and the Banking Ordinance. It contains essential information about the facility's terms, including amount, purpose, interest rates, fees, repayment schedule, security requirements, and conditions precedent. The Credit Facility Letter is particularly important in Hong Kong's financial center context, where it must balance commercial practicality with regulatory compliance while providing clear and enforceable terms for both parties.
