Intercompany Revolving Loan Agreement Template for United Arab Emirates

The Intercompany Revolving Loan Agreement is essential for UAE-based corporate groups seeking to establish efficient internal financing arrangements. This document is typically used when a parent company, holding company, or designated group treasury entity provides revolving credit facilities to other group entities. It enables borrowers to draw down, repay, and re-borrow funds up to a specified limit, providing flexibility in managing group liquidity. The agreement must comply with UAE regulatory requirements, including the UAE Commercial Companies Law, Central Bank regulations, and economic substance requirements. It includes detailed provisions for interest calculations, drawdown procedures, repayment terms, and necessary corporate approvals, while ensuring alignment with UAE's related party transaction regulations and corporate governance standards.

1. Parties: Identification of the lender and borrower entities, including their full corporate names, registration details, and addresses

2. Background: Context of the intercompany loan arrangement and relationship between the parties

3. Definitions: Definitions of key terms used throughout the agreement, including financial terms and technical concepts

4. The Facility: Details of the revolving loan facility, including the commitment amount, purpose, and revolving nature

5. Drawdown Conditions: Prerequisites and conditions for making drawdowns under the facility

6. Interest: Interest rate provisions, calculation methods, and payment terms in compliance with UAE law

7. Repayment and Prepayment: Terms for repayment of drawn amounts and conditions for voluntary prepayment

8. Representations and Warranties: Standard confirmations given by the borrower regarding its status and capacity

9. Covenants: Ongoing obligations of the borrower during the term of the facility

10. Events of Default: Circumstances that would constitute default and consequences thereof

11. Payments: Payment mechanics, currency, and treatment of non-business days

12. Notices: Communication requirements and contact details for formal notices

13. Governing Law and Jurisdiction: Confirmation of UAE law as governing law and jurisdiction for disputes

14. Execution: Signature blocks and execution formalities complying with UAE requirements