Banking & Finance Law
Map all financing terms, covenants, approvals and security before accepting a loan package.
Read the complete financing package
Put the facility agreement beside the security documents, guarantees, repayment plan and corporate approvals. Identify each borrower and guarantor, the currency and permitted use, the conditions for drawing funds, and the fees and rate changes after signing. A headline rate or a term sheet does not describe every obligation in the signed package.
Test the covenants
Model a weak quarter before accepting financial ratios, payment dates and reporting deadlines. Assign an owner to each calculation and certificate, and check how an error can be cured. Restrictions on dividends, new debt, asset disposals or restructuring should be compared with the decisions the business actually expects to make. Record deadlines and notices in a calendar that can be maintained.
Security and change
Trace ownership of pledged assets, existing interests, approvals and documentary steps. A security clause alone does not prove priority or a predictable enforcement outcome. If conditions change, identify who can seek a waiver, refinancing or amendment, what information the lender will need and whether fees or repayment terms would change. Get local advice before a missed notice or a transfer of assets.
Related reading
For jurisdiction-specific file preparation, see our Kuwait financing checklist or Egypt financing checklist. A proposed acquisition or group reorganization may also need corporate transaction advice. For insolvency matters, see Restructuring & Bankruptcy in Egypt.
This page is general information. Kuwait and Egypt have different rules for security and enforcement; review the actual instrument locally before committing.