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Facility Letter Template for Qatar

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Key Requirements PROMPT example:

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."

Document background
The Facility Letter is a crucial banking document used in Qatar when a financial institution extends credit facilities to borrowers. It serves as the primary documentation of the lending arrangement, incorporating all essential terms and conditions of the facility while ensuring compliance with Qatar Central Bank regulations and local laws. The document is particularly important in Qatar's financial landscape as it must balance conventional banking practices with local regulatory requirements and, where applicable, Sharia principles. A Facility Letter typically includes details about the facility type, amount, pricing, tenure, security structure, conditions precedent, and ongoing obligations of the borrower. It's used across various sectors and can be adapted for different types of facilities, from simple working capital lines to complex structured finance arrangements.
Suggested Sections

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

Optional Sections

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

Suggested Schedules

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

Alex Denne

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

Relevant legal definitions
























































Clauses




































Relevant Industries

Banking & Financial Services

Real Estate & Construction

Manufacturing & Industrial

Trading & Commerce

Hospitality & Tourism

Healthcare

Education

Technology & Telecommunications

Energy & Resources

Retail

Transportation & Logistics

Professional Services

Relevant Teams

Legal

Finance

Treasury

Compliance

Risk Management

Corporate Banking

Credit

Operations

Commercial Banking

Islamic Banking

Documentation

Relevant Roles

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

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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