Debt Financing Term Sheet for Pakistan

Debt Financing Term Sheet Template for Pakistan

A comprehensive preliminary document governed by Pakistani law that outlines the key commercial and legal terms of a proposed debt financing arrangement. The document serves as a foundation for negotiation and subsequent detailed documentation, incorporating local regulatory requirements and market practices. It addresses essential elements including facility amount, interest rates, repayment terms, security structure, and key conditions, while ensuring compliance with Pakistani banking regulations and financial laws. The term sheet provides a framework for both parties to agree on fundamental terms before proceeding with full documentation.

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What is a Debt Financing Term Sheet?

The Debt Financing Term Sheet is a crucial preliminary document used in Pakistani financing transactions to establish the fundamental terms of a proposed lending arrangement. It serves as a roadmap for the transaction, typically issued after initial commercial discussions but before detailed legal documentation. The document captures key commercial terms including facility amount, pricing, tenor, security structure, and major conditions, while considering Pakistani regulatory requirements and market practices. This term sheet is essential for obtaining internal approvals from both lender and borrower organizations and guides the preparation of detailed facility documentation. While generally non-binding except for certain provisions (such as confidentiality and exclusivity), it forms the basis for the lender's credit approval process and the borrower's internal authorization procedures.

What sections should be included in a Debt Financing Term Sheet?

1. Parties: Identification of the lender(s) and borrower(s), including their legal names, registration details, and addresses

2. Background: Brief context of the financing arrangement and purpose of the facility

3. Definitions: Key terms used throughout the term sheet

4. Facility Type and Amount: Description of the type of facility (term loan, revolving credit, etc.) and the principal amount

5. Purpose: Specified use of the loan proceeds

6. Interest Rate and Fees: Details of interest rate, calculation method, and all applicable fees

7. Tenor and Repayment: Loan duration and repayment schedule

8. Security Structure: Overview of collateral and security arrangements

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

10. Conditions Precedent: Key conditions to be satisfied before drawdown

11. Events of Default: List of standard events of default

12. Governing Law: Specification of Pakistani law as governing law and jurisdiction

13. Binding Effect: Statement on which terms are legally binding and which are subject to further documentation

What sections are optional to include in a Debt Financing Term Sheet?

1. Syndication Provisions: Required when the facility may be syndicated to multiple lenders

2. Islamic Finance Structure: Needed when the financing needs to be Shariah-compliant

3. Foreign Currency Provisions: Required for facilities involving foreign currency

4. Group Structure: Necessary when dealing with complex corporate groups or multiple borrowers

5. Hedging Requirements: Include when interest rate or currency hedging is mandatory

6. Intercreditor Provisions: Required when there are multiple creditors or existing facilities

7. Security Sharing: Needed when security is shared with other facilities

8. Green Financing Provisions: Include for environmentally-focused or sustainable financing

What schedules should be included in a Debt Financing Term Sheet?

1. Term Sheet Summary: One-page summary of key commercial terms

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

3. Repayment Schedule: Indicative repayment schedule with dates and amounts

4. Security Assets Schedule: List of assets to be provided as security

5. Corporate Structure Chart: Diagram showing relevant corporate relationships

6. Financial Covenants Calculations: Detailed methodology for calculating financial covenants

7. Conditions Precedent Checklist: Detailed list of required documents and conditions

8. Required Authorizations: List of regulatory and corporate approvals needed

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

Jurisdiction

Pakistan

Publisher

Genie AI

Document Type

Loan Agreement

Sector

Banking

Cost

Free to use
Clauses
Relevant Industries

Banking & Financial Services

Manufacturing

Real Estate & Construction

Energy & Utilities

Technology & Telecommunications

Healthcare & Pharmaceuticals

Agriculture & Food Processing

Infrastructure & Transportation

Retail & Consumer Goods

Mining & Natural Resources

Education

Hospitality & Tourism

Relevant Teams

Legal

Finance

Treasury

Credit Risk

Corporate Banking

Compliance

Company Secretarial

Transaction Management

Project Finance

Investment Banking

Relevant Roles

Chief Financial Officer

Finance Director

Treasury Manager

Corporate Finance Manager

Legal Counsel

Relationship Manager

Credit Risk Manager

Investment Banking Director

Financial Controller

Company Secretary

Compliance Officer

Corporate Banking Manager

Transaction Manager

Senior Loan Officer

Project Finance Manager

Industries
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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