Document background
The Senior Facilities Agreement is a fundamental document used in Saudi Arabian corporate financing transactions where significant capital is required for corporate purposes, acquisitions, or major projects. It serves as the primary agreement between lenders and borrowers in transactions requiring substantial financing while ensuring compliance with Saudi law and Shariah principles. The document typically covers facility amounts ranging from tens to hundreds of millions of Saudi Riyals and includes detailed provisions for profit calculation (rather than interest), security arrangements, conditions for drawdown, ongoing obligations, and events of default. This type of agreement is particularly important in the Saudi Arabian context as it must bridge conventional financing concepts with Islamic finance principles while ensuring enforceability under local laws and regulations. The agreement requires careful structuring to ensure it meets both commercial objectives and religious compliance requirements.
