Document background
A Bridge Loan Term Sheet is a crucial document used in the Nigerian financial market when companies require interim financing to bridge a temporary funding gap. This document typically precedes a more permanent financing solution and outlines the key terms and conditions of the proposed bridge facility. It must comply with Nigerian banking regulations, including the Banks and Other Financial Institutions Act (BOFIA) 2020 and Central Bank of Nigeria guidelines. The term sheet serves as a blueprint for the subsequent facility agreement, capturing commercial terms such as facility amount, pricing, security structure, and conditions precedent. It's particularly relevant in time-sensitive transactions where parties need to quickly establish the framework for the financing while maintaining flexibility for negotiation of the detailed facility documentation.
