Commitment Letter From Lender for Malta

Commitment Letter From Lender Template for Malta

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Commitment Letter From Lender

"I need a Commitment Letter From Lender under Maltese law for a €5 million corporate facility to finance a real estate acquisition in Valletta, with the letter requiring completion by March 2025 and including standard property security requirements."

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What is a Commitment Letter From Lender?

The Commitment Letter From Lender is a crucial document in the lending process under Maltese law, typically issued after initial credit approval but before the execution of full facility documentation. It represents the lender's formal undertaking to provide financing, subject to conditions, and serves as a bridge between initial loan application and final loan documentation. The letter outlines essential terms including facility amount, purpose, interest rate, tenor, security requirements, and key conditions precedent. Used across various financing scenarios, from corporate lending to project finance, it provides borrowers with the certainty needed to proceed with their financing plans while giving lenders appropriate protection through carefully structured conditions. As a Maltese law-governed document, it must comply with local banking regulations, financial services laws, and relevant EU directives.

What sections should be included in a Commitment Letter From Lender?

1. Letter Header: Bank letterhead, date, reference number, and recipient's details

2. Salutation: Formal greeting to authorized representative of the borrower

3. Introduction: Reference to loan application and purpose of the letter

4. Facility Details: Type of facility, amount, currency, and purpose

5. Key Terms: Interest rate, tenor, repayment terms, and fees

6. Conditions Precedent: List of documents and conditions required before facility availability

7. Key Covenants: Essential financial and non-financial covenants

8. Security Requirements: Overview of required security and guarantees

9. Expiry of Offer: Validity period of the commitment

10. Acceptance Procedure: Instructions for accepting the commitment

11. Governing Law: Reference to Maltese law governance

12. Closing: Formal closing, bank signatory details

What sections are optional to include in a Commitment Letter From Lender?

1. Syndication Terms: Include when the facility will be syndicated to other lenders

2. Market Disruption: Include for facilities with variable interest rates

3. Project Specific Conditions: Include for project finance facilities

4. Multiple Drawing Conditions: Include for facilities with multiple tranches or drawing periods

5. Foreign Exchange Provisions: Include for facilities in foreign currencies

6. ESG Requirements: Include for facilities with environmental, social, and governance requirements

7. Regulatory Disclosures: Include specific disclosures required for certain types of borrowers or facilities

What schedules should be included in a Commitment Letter From Lender?

1. Term Sheet: Detailed breakdown of all facility terms and conditions

2. Fee Schedule: Detailed breakdown of all applicable fees and charges

3. Form of Drawdown Notice: Template for borrower to request disbursement

4. Financial Covenant Calculations: Detailed methodology for calculating financial covenants

5. Security Details: Comprehensive list and description of required security items

6. Required Documents Checklist: List of all documents required for facility activation

7. Know Your Customer Requirements: List of required KYC documentation

Authors

Alex Denne

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

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Banking

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Relevant Roles

Chief Financial Officer

Finance Director

Treasury Manager

Credit Officer

Relationship Manager

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Compliance Officer

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Banking Executive

Loan Officer

Corporate Finance Manager

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