The Bridge Financing Agreement is essential in situations where companies require immediate short-term funding while arranging or waiting for longer-term financing solutions. This document type is commonly used in Nigerian business transactions when companies need interim funding for acquisitions, project development, or working capital requirements. The agreement typically includes detailed provisions for loan amount, interest rates, security arrangements, and repayment terms, all structured to comply with Nigerian banking and financial services regulations. The Bridge Financing Agreement must adhere to specific requirements under Nigerian law, including compliance with Central Bank of Nigeria guidelines, BOFIA 2020, and CAMA 2020. It serves as a crucial instrument for businesses seeking to maintain operations or pursue opportunities while securing permanent financing arrangements.

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

2. Background: Context of the bridge financing, including purpose and relationship between parties

3. Definitions and Interpretation: Definitions of key terms used throughout the agreement and rules of interpretation

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

5. Conditions Precedent: Conditions that must be satisfied before the facility becomes available

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

7. Interest: Interest rate, calculation method, payment dates, and default interest provisions

8. Repayment: Terms and schedule for repayment of the principal amount

9. Prepayment: Provisions for early repayment, including any penalties or notices required

10. Representations and Warranties: Standard representations and warranties given by the borrower

11. Covenants: Positive and negative obligations of the borrower during the loan period

12. Events of Default: Circumstances constituting default and consequences thereof

13. Security: Details of any security or guarantees provided for the loan

14. Payments: Payment mechanics, currency, and business day conventions

15. Costs and Expenses: Allocation of transaction costs and ongoing expenses

16. Notices: Communication procedures between parties

17. Assignment and Transfer: Rights and restrictions regarding transfer of rights and obligations

18. Governing Law and Jurisdiction: Nigerian law as governing law and jurisdiction for disputes