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Investment Loan Agreement for Nigeria

Investment Loan Agreement Template for Nigeria

A comprehensive legal document governed by Nigerian law that establishes the terms and conditions for an investment loan between a financial institution (lender) and a borrower. The agreement details the loan amount, interest rates, repayment terms, security arrangements, and obligations of all parties involved, while ensuring compliance with Nigerian banking regulations, including the Banks and Other Financial Institutions Act (BOFIA) 2020 and relevant Central Bank of Nigeria guidelines. It includes provisions for drawdown conditions, representations and warranties, covenants, events of default, and enforcement mechanisms specific to the Nigerian legal context.

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Investment Loan Agreement

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What is a Investment Loan Agreement?

The Investment Loan Agreement is a crucial financing document used in Nigeria when a financial institution provides significant funding for business expansion, project development, or major investments. This agreement is essential for structuring medium to large-scale financing transactions in compliance with Nigerian banking laws and regulations. It typically includes detailed provisions for loan disbursement, security arrangements, borrower obligations, and enforcement mechanisms. The document must align with the Banks and Other Financial Institutions Act (BOFIA) 2020, Central Bank of Nigeria regulations, and other relevant Nigerian financial sector legislation. It's particularly important for corporate borrowings, project finance, and structured investment transactions in the Nigerian market, where clear documentation of terms and robust security arrangements are essential for both lender protection and borrower certainty.

What sections should be included in a Investment Loan Agreement?

1. Parties: Identification of the lender and borrower with full legal names and addresses

2. Background: Context of the investment loan, purpose, and basic transaction structure

3. Definitions and Interpretation: Definitions of key terms and interpretation rules for the agreement

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

5. Conditions Precedent: Conditions that must be satisfied before loan disbursement

6. Drawdown: Procedures and requirements for drawing down the loan

7. Interest: Interest rate, calculation method, and payment terms

8. Repayment: Repayment schedule, methods, and prepayment provisions

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

10. Covenants: Positive and negative obligations of the borrower during the loan term

11. Events of Default: Circumstances constituting default and consequences

12. Security: Details of collateral and security arrangements

13. Assignments and Transfers: Rules regarding transfer of rights and obligations

14. Notices: Communication procedures between parties

15. Governing Law and Jurisdiction: Nigerian law as governing law and jurisdiction details

16. Execution: Signature blocks and execution formalities

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

1. Guarantees: Required when third-party guarantees are part of the security structure

2. Foreign Exchange Provisions: Needed when the loan involves foreign currency or international parties

3. Tax Provisions: Detailed tax clauses required for complex investment structures or international elements

4. Agent Provisions: Required in syndicated loans or when an agent bank is involved

5. Islamic Finance Provisions: Required when the loan needs to be Sharia-compliant

6. Step-In Rights: Needed for project finance or specific investment scenarios

7. Environmental Compliance: Required for investments in environmentally sensitive sectors

8. Political Risk Insurance: Needed for large-scale investments or infrastructure projects

What schedules should be included in a Investment Loan Agreement?

1. Schedule 1 - Conditions Precedent Documents: List of required documents and conditions to be met before drawdown

2. Schedule 2 - Form of Drawdown Notice: Template for drawdown requests

3. Schedule 3 - Repayment Schedule: Detailed amortization schedule

4. Schedule 4 - Security Documents: List and copies of all security documents

5. Schedule 5 - Financial Covenants: Detailed financial ratios and requirements

6. Schedule 6 - Permitted Security Interests: List of pre-approved security interests

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

8. Appendix B - Banking Details: Account details for disbursement and repayment

9. Appendix C - Project Documents: Key documents related to the investment project

Authors

Alex Denne

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

Jurisdiction

Nigeria

Publisher

Ƶ

Document Type

Financing Agreement

Cost

Free to use
Relevant legal definitions













































































Clauses









































Relevant Industries

Banking and Financial Services

Real Estate and Construction

Oil and Gas

Manufacturing

Agriculture and Agribusiness

Technology and Telecommunications

Infrastructure Development

Power and Energy

Mining and Natural Resources

Healthcare

Education

Transport and Logistics

Retail and Consumer Goods

Relevant Teams

Legal

Finance

Corporate Banking

Risk Management

Compliance

Credit Analysis

Treasury

Corporate Advisory

Investment Banking

Project Finance

Business Development

Corporate Secretariat

Relevant Roles

Chief Financial Officer

Finance Director

Legal Counsel

Corporate Lawyer

Investment Manager

Credit Risk Manager

Relationship Manager

Compliance Officer

Treasury Manager

Project Finance Manager

Investment Banker

Loan Officer

Corporate Banking Manager

Risk Assessment Officer

Business Development Manager

Company Secretary

Financial Controller

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

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