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Cimb Facility Agreement

When it comes to business loans and financing, a facility agreement is a crucial document that outlines the terms and conditions of the loan. For companies in the banking and financial services industry, the CIMB facility agreement is one such agreement that plays a vital role in securing financing.

CIMB, which stands for Commerce International Merchant Bankers, is a leading banking group in Southeast Asia with a presence in over 15 countries. Its facility agreement is a binding contract between the bank and its borrowers, specifying the terms of the loan facility.

The CIMB facility agreement typically covers the following key areas:

1. Purpose of the facility: This clause outlines the purpose of the loan facility and how the borrower intends to use the funds. This is important for the bank to ensure that the loan is being used for legitimate purposes.

2. Repayment terms: The repayment terms specify how and when the borrower is expected to repay the loan facility. This may include the frequency and amount of payments, the repayment period, and any interest rate charged on the loan.

3. Security and collateral: To secure the loan facility, the borrower may need to provide security or collateral. This clause outlines what assets can be used as collateral and how they will be valued.

4. Covenants and undertakings: The borrower is required to comply with certain covenants and undertakings to maintain the loan facility. This may include financial covenants, such as maintaining a certain level of profitability or asset quality, or non-financial covenants, such as maintaining specified insurance coverage or providing regular financial statements.

5. Events of default: This clause outlines the circumstances in which the loan facility may be in default and the consequences of default, including the right of the bank to terminate the loan facility and demand immediate repayment.

As a borrower, it is important to review the CIMB facility agreement carefully and understand its terms and conditions before signing. This will help you avoid any potential misunderstandings or disputes with the bank.

In conclusion, the CIMB facility agreement is a vital document that sets out the terms and conditions of a loan facility from CIMB. By understanding the key clauses of the agreement, borrowers can ensure they are making informed decisions about their financing needs and are able to comply with the terms of the loan.

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