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Commercial Loan Term Sheet
"I need a Commercial Loan Term Sheet under Qatar law for a secured facility of QAR 50 million to finance a real estate development project, with drawdown expected by March 2025 and including both conventional and Islamic finance options."
1. Parties: Identification of Lender(s) and Borrower(s) with full legal names and registration details
2. Background: Brief context of the proposed facility and its purpose
3. Definitions: Key terms used throughout the term sheet
4. Facility Type and Purpose: Description of the loan type and permitted uses
5. Facility Amount: Principal amount of the loan and currency
6. Availability Period: Period during which the facility can be drawn
7. Interest/Profit Rate: Applicable interest rate or profit rate structure, including base rate and margin
8. Repayment Terms: Schedule and method of repayment
9. Fees: All applicable fees including arrangement, commitment, and processing fees
10. Security Structure: Overview of required security and guarantees
11. Key Financial Covenants: Primary financial ratios and requirements to be maintained
12. Conditions Precedent: Key conditions to be satisfied before drawdown
13. Representations and Warranties: Basic representations required from the borrower
14. Key Undertakings: Essential positive and negative covenants
15. Events of Default: Principal events triggering default
16. Governing Law: Confirmation of Qatar law as governing law
17. Binding Effect: Statement on whether the term sheet is binding or non-binding
1. Islamic Finance Structure: Required if the facility needs to be Shariah-compliant, detailing the Islamic structure used (e.g., Murabaha, Ijara)
2. Syndication Provisions: Include for larger facilities that may be syndicated, detailing syndication rights and process
3. Currency Provisions: Required for multi-currency facilities or cross-border transactions
4. Hedging Requirements: Include if mandatory hedging is required for interest rate or foreign exchange risk
5. Security Sharing: Required for transactions involving multiple creditors or facilities
6. Tax Provisions: Include for cross-border transactions or where specific tax structures are relevant
7. Related Party Transactions: Include where borrower has significant related party dealings requiring control
8. Regulatory Compliance: Include specific sections for regulated borrowers or specific industry requirements
1. Schedule 1 - Facility Summary: Detailed breakdown of facility amounts, sub-limits, and pricing
2. Schedule 2 - Repayment Schedule: Detailed amortization schedule if applicable
3. Schedule 3 - Security Details: Comprehensive list and description of all security items
4. Schedule 4 - Financial Covenants Calculations: Detailed calculation methodology for financial covenants
5. Schedule 5 - Conditions Precedent: Complete list of required conditions precedent documentation
6. Schedule 6 - Form of Drawdown Notice: Template for drawdown requests
7. Schedule 7 - Key Documents List: List of required documentation for facility completion
8. Schedule 8 - Contact Details: Key contact information for all parties
Authors
Banking and Financial Services
Real Estate and Construction
Oil and Gas
Manufacturing
Retail and Commercial
Healthcare
Education
Hospitality and Tourism
Technology and Telecommunications
Transportation and Logistics
Infrastructure Development
Energy and Utilities
Industrial and Mining
Trading and Distribution
Professional Services
Legal
Finance
Treasury
Risk Management
Compliance
Corporate Banking
Credit Analysis
Islamic Banking
Operations
Corporate Finance
Commercial Banking
Investment Banking
Transaction Management
Documentation
Regulatory Affairs
Chief Financial Officer
Finance Director
Treasury Manager
Corporate Banking Manager
Relationship Manager
Credit Risk Manager
Legal Counsel
Compliance Officer
Financial Controller
Investment Manager
Corporate Finance Manager
Loan Officer
Islamic Banking Specialist
Transaction Manager
Credit Analyst
Senior Banker
Banking Operations Manager
Risk Assessment Officer
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