The Debt Facility Agreement is a crucial document used when a business entity seeks to obtain debt financing from a financial institution in Malaysia. It serves as the primary contract governing the lending relationship, outlining the terms under which the facility is provided, utilized, and repaid. The agreement must comply with Malaysian banking regulations, particularly the Financial Services Act 2013 and Bank Negara Malaysia guidelines, while addressing key commercial terms such as facility limits, interest rates, security requirements, and borrower obligations. This document is essential for both conventional and Islamic banking facilities, requiring careful consideration of Malaysian legal requirements, market practices, and the specific needs of the transaction parties. It typically includes detailed provisions for drawdown mechanics, representations and warranties, financial covenants, events of default, and enforcement rights.

1. Parties: Identification of the lender(s) and borrower(s) with full legal names and registration details

2. Background: Context of the facility arrangement and purpose of the loan

3. Definitions and Interpretation: Definitions of terms used in the agreement and interpretation clauses

4. The Facility: Details of the facility amount, purpose, and availability period

5. Conditions Precedent: Conditions that must be satisfied before drawdown

6. Drawdown: Procedures and requirements for drawing down the facility

7. Interest: Interest rate, calculation method, and payment provisions

8. Repayment: Terms and schedule for repayment of the facility

9. Representations and Warranties: Borrower's representations about its legal and financial status

10. Covenants: Positive and negative undertakings by the borrower

11. Events of Default: Circumstances constituting default and consequences

12. Security: Overview of security arrangements for the facility

13. Payments: Payment mechanics, currency, and tax provisions

14. Changes to Parties: Assignment and transfer provisions

15. Notices: Communication requirements and contact details

16. General Provisions: Miscellaneous legal and administrative provisions

17. Governing Law and Jurisdiction: Choice of Malaysian law and jurisdiction provisions