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Facility Letter
"I need a Facility Letter under Qatar law for a QAR 50 million Islamic working capital facility to a manufacturing company, with a 24-month tenor starting from March 2025, including quarterly financial covenants and security over receivables."
1. Letter Header: Bank's letterhead, date, reference number, and addressee details
2. Salutation: Formal address to the borrower
3. Facility Summary: Brief overview of the approved facility type and amount
4. Borrower Details: Complete legal name and address of the borrower
5. Facility Type and Purpose: Detailed description of the facility type and its permitted uses
6. Facility Amount: The approved limit and currency of the facility
7. Interest/Profit Rate: Applicable interest or profit rate (Sharia-compliant) and calculation method
8. Tenor and Availability: Duration of the facility and availability period
9. Security Requirements: List of required security, guarantees, or collateral
10. Key Conditions Precedent: Conditions that must be satisfied before facility utilization
11. Fees and Charges: All applicable fees, charges, and commission
12. Covenants: Financial and non-financial undertakings by the borrower
13. Events of Default: Circumstances that would constitute default
14. Governing Law: Confirmation of Qatar law as governing law
15. Acceptance: Signature blocks and acceptance mechanism
1. Islamic Structure: Required for Sharia-compliant facilities, detailing the Islamic structure used
2. Currency Provisions: Required for multi-currency facilities
3. Syndication Terms: Required for syndicated facilities
4. Insurance Requirements: Required when specific insurance coverage is needed
5. Security Margin: Required for secured facilities with margin requirements
6. Review and Renewal: Optional section for renewable facilities
7. Cross-Default: Required when there are other facilities with the same borrower
8. Assignment Provisions: Required if assignment or transfer rights are to be included
1. Schedule 1 - Definitions: Detailed definitions of terms used in the facility letter
2. Schedule 2 - Conditions Precedent: Detailed list of all required documents and conditions
3. Schedule 3 - Utilization Request Form: Standard form for requesting drawdown
4. Schedule 4 - Fee Schedule: Detailed breakdown of all fees and charges
5. Schedule 5 - Security Details: Detailed description of security structure and requirements
6. Schedule 6 - Compliance Certificate: Format for periodic compliance reporting
7. Appendix A - Calculation Examples: Examples of interest/profit calculations
8. Appendix B - Required Documents: List of supporting documents required
Authors
Banking & Financial Services
Real Estate & Construction
Manufacturing & Industrial
Trading & Commerce
Hospitality & Tourism
Healthcare
Education
Technology & Telecommunications
Energy & Resources
Retail
Transportation & Logistics
Professional Services
Legal
Finance
Treasury
Compliance
Risk Management
Corporate Banking
Credit
Operations
Commercial Banking
Islamic Banking
Documentation
Chief Financial Officer
Finance Director
Treasury Manager
Financial Controller
Credit Manager
Relationship Manager
Legal Counsel
Compliance Officer
Risk Manager
Corporate Banking Officer
Finance Manager
Account Manager
Credit Analyst
Managing Director
CEO
Company Secretary
Financial Analyst
Treasury Analyst
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