Learning Objectives
By the end of this module, you will be able to:
Understand the Role of Loan Offers and Facility Agreements
Explain the purpose of loan documentation in managing risk and formalising the client relationship.
Distinguish between Loan Offers and Facility Agreements, recognising when each is used in different lending scenarios
Identify and Interpret Key Clauses
Break down financial and non-financial covenants, undertakings, and events of defaul.
Understand conditions precedent, conditions subsequent, and security provisions clauses
Analyse Credit Risk and Financial Implications
Assess how loan documentation affects cash flow, performance, and compliance.
Understand how key metrics such as Debt Service Coverage Ratio (DSCR) and Gross Leverage Ratio (GLR) are documented
Develop Risk Mitigation and Negotiation Strategies
See how security structures, covenants, and repayment arrangements are recorded
Balance commercial flexibility with the lender’s enforcement right.
Negotiate terms that address both client needs and the lender’s risk appetite
Apply Loan Structuring Principles to Real-World Lending Scenarios
Use case studies and templates to practise reviewing and interpreting loan documentation.
Analyse loan structuring and covenant trends to support credit recommendations
