Document background
The Syndicated Loan Term Sheet is a crucial preliminary document used in Indonesian financing transactions where multiple lenders combine to provide a large-scale loan facility. It is typically prepared after initial commercial discussions but before detailed documentation, serving as a roadmap for the transaction and subsequent documentation. The document must comply with Indonesian banking regulations, particularly those concerning foreign currency loans, security requirements, and mandatory involvement of local banks. It captures essential commercial terms, conditions, and regulatory requirements that will form the basis of the full facility agreement. This document is particularly important in the Indonesian context where regulatory requirements can significantly impact structure and implementation of syndicated facilities.
