Revolving Credit Facility Agreement Template for Indonesia

The Revolving Credit Facility Agreement is a key financing document used in Indonesian banking transactions where borrowers require flexible access to funding. It establishes a commitment from the lender to provide loans that can be drawn, repaid, and redrawn during the facility period, subject to an overall facility limit. This type of agreement is particularly suitable for businesses with fluctuating working capital needs or project-based funding requirements. The document must comply with Indonesian Banking Law (Law No. 7 of 1992 as amended), OJK regulations, and Indonesian Civil Code requirements. It typically includes comprehensive provisions on facility mechanics, security arrangements, financial covenants, and reporting obligations, all structured to meet Indonesian regulatory requirements and market practice.

1. Parties: Identification of the lender(s), borrower(s), and any guarantors

2. Background: Context of the facility and relationship between parties

3. Definitions and Interpretation: Defined terms, rules of interpretation, and currency conventions

4. The Facility: Core terms of the revolving credit facility including amount, purpose, and availability period

5. Conditions Precedent: Conditions that must be satisfied before initial and subsequent utilization

6. Utilization: Drawdown mechanics, notice requirements, and availability conditions

7. Repayment and Prepayment: Terms for regular repayment, mandatory and voluntary prepayment provisions

8. Interest: Interest calculation, periods, default interest, and break costs

9. Fees: Commitment fees, arrangement fees, and other applicable charges

10. Tax Provisions: Tax gross-up, indemnities, and compliance with Indonesian tax regulations

11. Increased Costs and Illegality: Provisions for changes in law or circumstances affecting the facility

12. Representations and Warranties: Standard and facility-specific representations by the borrower

13. Information Undertakings: Financial and other information to be provided by the borrower

14. General Undertakings: Positive and negative covenants applicable to the borrower

15. Events of Default: Circumstances constituting default and consequences

16. Changes to Parties: Transfer and assignment provisions

17. Administration: Payment mechanics, calculations, and notices

18. Governing Law and Enforcement: Choice of Indonesian law and enforcement provisions