Our Ref: <Page no.>
<Company Name> PRIVATE & CONFIDENTIAL
GENERAL FACILITY LETTER
PRIVATE AND CONFIDENTIAL
Our Ref: [ ]
Date: [ ]
To: [ Name of Borrower ]
[ Address ]
Attn:
Dear Sirs
CREDIT FACILITIES
We are pleased to set out the terms and conditions below upon which we would make available to you the facilities set out below (collectively “the Facilities” and each a “Facility”) *[, for a total amount not to exceed any one time S$[]] [n.b. if the facility amount is clearly set out in paragraph 1 below, the wordings in square brackets are optional].
The availability of the Facilities is also subject to completion of legal documentation *[and based on the Standard Terms and Conditions Governing Banking Facilities] (n.b. You must include the words highlighted in yellow if there are no solicitors acting for OCBC in your transaction).
[This opening paragraph is not to be altered, otherwise the non-legally binding nature of this letter is affected]
1. LIMITS/QUANTUM
Limit
( ) Overdraft *[of US$ [] up to Singapore Dollars S$ [ ]
equivalent to S$ []
( ) Letter of Credit S$ [ ]
(Sight and/or usance up to [] days)
*[Within Letter of Credit limit, sublimit for:]
( ) Local Letter of Credit S$ [ ]
(Sight and/or usance up to [] days)
( ) Trust Receipts S$ [ ]
(Under Letter of Credit *[and Inward Collection Bills]
up to []days)
( ) Draft Loans (Purchase) S$ [ ]
(Up to [] days)
( ) Shipping Guarantee/Airway Bills S$ [ ]
(Under Letter of Credit *[and Inward Collection Bills])
( ) Accounts Receivables Financing S$ [ ]
(Tenor : up to [] days)
(Margin of Advance : [] % of gross value of invoice less
face value of credit notes relating thereto ("Net Invoice Value"))
( ) Performance Bond(s)/Bid Bond(s) S$ [ ]
(Tenor : up to []months)
( ) Banker’s Guarantee S$ [ ]
(Maximum Tenor excluding claim period: [v] years.
Maximum Claim Period: [] months)
( ) Standby Letters of Credit S$ [ ]
(Maximum Tenor: [] months)
( ) Draft Loans (Sales) S$ [ ]
(Up to [] days)
( ) Export Bills Purchased S$ [ ]
(Up to [] days for *[discounting of export bills drawn under
Letters of Credit with/without discrepancies and those without
bank lines/for discounting of export collections bills (DA/DP)/and
for purchase of foreign cheques and clean bills of exchange])
( ) Packing Loan/Pre-export Financing S$ [ ]
(Tenor: up to [] days)
( ) Trade Bills Discounting S$ [ ]
(Up to [] days)
( ) Specific Advance Facility *[Multi-currency Specific S$ [ ]
Advance Facility]
( ) Revolving Credit Facility *[Multi-currency Revolving S$ [ ]
Credit Facility]
(Tenor : up to [] years)
( ) Term Loan S$ [ ]
(Tenor : [] years)
( ) Foreign Exchange S$ [ ]
( ) Interest Rate Derivatives S$ [ ]
Total: S$ [ ]
*Combined outstanding under ( ) to ( ) shall not exceed S$[] [and/or individual sublimit] at any one time.
*The Facilities shall not exceed [v]% of the value of [state security], as determined by the Bank, at any time.
2. PURPOSE
[state purpose for which the Facilities are granted ]
( ) / Overdraft / : / For working capital requirements( ) / Letter of Credit / : / For establishing irrevocable sight and/or usance Letter of Credit up to [] days or such other period as notified by the Bank to you
( ) / Trust Receipt / : / For issuing Trust Receipt under our Letter of Credit and inward bills for collection up to [] days.
( ) / Shipping Guarantee/Airway Bills / : / For issuance of Shipping Guarantee under Letter of Credit and inward bills for collection.
( ) / Draft Loans / : / For financing of invoices up to [] days or such other period as notified by the Bank to you.
( ) / Export Bills Purchased / : / For discounting of sight and/or usance export bills up to [] days or such other period as notified by the Bank to you.
( ) / Foreign Exchange / : / For *[spot and forward contract [including non-deliverable forward]]/[currency options [and non-deliverable forward options]]/[FX swaps] up to [] months.
( ) / Interest Rate Derivatives / : / For interest rate derivative transactions (including,*[interest rate swaps]/[forward rate agreements]/[interest rate options]/[cross currency swaps]) up to [] months.
( ) / [Others] / : / [ ]
3. PRICING
( ) / Overdraft / : / []% p.a. over the Bank's prevailing prime lending rate calculated on daily balance with monthly rests.[or]
[]% p.a. over the Bank's prevailing US$ prime lending rate calculated on daily balance with monthly rests.
( ) / Letter of Credit / : / As per the Bank’s prevailing schedule of charges.
[or]
commission at []% per month, subject to a minimum [] months, on the amount of the Letter of Credit.
( ) / Local Letter of Credit / : / As per the Bank’s prevailing schedule of charges.
[or]
commission at []% per month, subject to a minimum [] months, on the amount of the Letter of Credit.
( ) / Trust Receipts / : / FOR SINGAPORE DOLLARS
[] % p.a. over the Bank's prevailing prime lending rate.
[or]
[] % p.a. over the Bank's prevailing *[Cost of Funds]/[Swap Offer Rate] as determined by the Bank.
FOR FOREIGN CURRENCY
[ ]% p.a. over the Bank's prevailing SIBOR as determined by the Bank.
[or]
[] % p.a. over the Bank's prevailing foreign currency prime lending rate.
( ) / Draft Loans (Purchase) / FOR SINGAPORE DOLLARS
[] % p.a. over the Bank's prevailing prime lending rate.
[or]
[] % p.a. over the Bank's prevailing *[Cost of Funds]/[Swap Offer Rate] as determined by the Bank.
FOR FOREIGN CURRENCY
[] % p.a. over the Bank's prevailing SIBOR as determined by the Bank.
[or]
[] % p.a. over the Bank's prevailing foreign currency prime lending rate.
( ) / Shipping Guarantee/Airway Bill / : / As per the Bank’s prevailing schedule of charges.
( ) / Accounts Receivables Financing / : / [] % p.a. over the Bank's prevailing prime lending rate.
[or]
[] % p.a. over the Bank's prevailing *[Cost of funds]/[Swap Offer Rate]/[SIBOR] as determined by the Bank.
and
commission charged at []% of Net Invoice Value for approved debtors, subject to a minimum fee of S$[] per invoice.
( ) / Performance Bond(s)/
Bid Bond(s) / : / As per the Bank’s prevailing schedule of charges.
[or]
commission at []% per annum subject to a minimum of S$[].
( ) / Banker’s Guarantee / : / As per the Bank’s prevailing schedule of charges.
[or]
commission at []% per annum subject to a minimum of S$[].
( ) / Standby Letters of Credit / : / As per the Bank’s prevailing schedule of charges.
[or]
commission at []% per month, subject to a minimum [] months on the amount of the Standby Letter of Credit.
[or]
commission at []% per year subject to a minimum of S$[].
( ) / Draft Loans (Sales) / : / FOR SINGAPORE DOLLARS
[] % p.a. over the Bank's prevailing prime lending rate.
[or]
[] % p.a. over the Bank's prevailing *[Cost of Funds]/[Swap Offer Rate] as determined by the Bank.
FOR FOREIGN CURRENCY
[] % p.a. over the Bank's prevailing SIBOR as determined by the Bank.
[or]
[]% p.a. over the Bank's prevailing foreign currency prime lending rate.
( ) / Export Bills Purchased / : / FOR SINGAPORE DOLLARS
[]% p.a. over the Bank's prevailing prime lending rate.
[or]
[]% p.a. over the Bank's prevailing *[Cost of Funds]/[Swap Offer Rate] as determined by the Bank.
FOR FOREIGN CURRENCY
[]% p.a. over the Bank's prevailing SIBOR as determined by the Bank.
[or]
[]% p.a. over the Bank's prevailing foreign currency prime lending rate.
( ) / Packing Loan/Pre-export Financing / : / FOR SINGAPORE DOLLARS
[]% p.a. over the Bank's prevailing prime lending rate.
[or]
[]% p.a. over the Bank's prevailing *[Cost of Funds]/[Swap Offer Rate] as determined by the Bank.
FOR FOREIGN CURRENCY
[]% p.a. over the Bank's prevailing SIBOR as determined by the Bank.
[or]
[]% p.a. over the Bank's prevailing foreign currency prime lending rate.
( ) / Trade Bills Discounting / : / []% over the Bank's Trade Bills Discounting rate.
( ) / Specific Advance Facility *[Multi-currency Specific Advance Facility] / : / FOR SINGAPORE DOLLARS
[cost of funds]
[]% p.a. over the Bank's prevailing Cost of Funds for interest periods of *[1, 2, 3, 6, 9 & 12 months] at the Borrower’s option.
[or]
[swap offer rate]
[]% p.a. over the Bank's prevailing Swap Offer Rate as determined by the Bank for interest periods of *[1, 2, 3, 6, 9 & 12 months] or such other interest periods at may be agreed by the Bank.
[or]
At the prevailing market rate as determined by the Bank
FOR FOREIGN CURRENCY
[ SIBOR]
[]% p.a. over the Bank's prevailing SIBOR as determined by the Bank for interest periods of *[1, 2, 3, 6, 9 & 12 months] or such other interest periods as may be agreed by the Bank.
[or]
At the prevailing market rate as determined by the Bank
( ) / Revolving Credit Facility *[Multi-currency Revolving Credit Facility] / : / FOR SINGAPORE DOLLARS
[ cost of funds]
[]% p.a. over the Bank's prevailing Cost of Funds for interest periods of *[1, 2, 3, 6, 9 & 12 months] at the Borrower’s option
[or]
[ swap offer rate]
[]% p.a. over the Bank's prevailing Swap Offer Rate as determined by the Bank for interest periods of *[1, 2, 3, 6, 9 & 12 months] or such other interest periods at may be agreed by the Bank.
[or]
At the prevailing market rate as determined by the Bank
FOR FOREIGN CURRENCY
[ SIBOR]
[]% p.a. over the Bank's prevailing SIBOR as determined by the Bank for interest periods of *[1, 2, 3, 6, 9 & 12 months] or such other interest periods as may be agreed by the Bank.
[or]
At the prevailing market rate as determined by the Bank
( ) / Term Loan / : / [prime rate]
[v]% p.a. over the Bank's prevailing prime lending rate calculated on daily balance with monthly rests.
[or]
[fixed rate]
1st year with effect from the date of *[disbursement]/ [compliance of all of the Bank’s requirements for purposes of this conversion] (“Effective Date”)
2nd year from the Effective Date
Thereafter / Fixed at []% p.a. with monthly rests
Fixed at []% p.a. with monthly rests.
At the Bank’s prevailing [prime lending rate]/[[v]% p.a. over the Bank's prevailing prime lending rate]/[[v]% p.a. below the Bank's prevailing board lending rate] with monthly rests.
Given the volatility in the market condition, the fixed rate is subject to revision by the Bank depending on the prevailing interest rate conditions on Effective Date.
[or]
Fixed at []% p.a. with monthly rests over a period of [] years with effect from the date of [disbursement/[compliance of all of the Bank’s requirements for purposes of this conversion] ("Effective Date")
Given the volatility in the market condition, the fixed rate is subject to revision by the Bank depending on the prevailing interest rate conditions on Effective Date.
[or]
[board lending rate ]
For the first [x] months commencing from the date of *[first disbursement/[compliance of all of the Bank’s requirements for purposes of this conversion] (“Effective Date”), the interest payable shall be at []% p.a. below the Bank's prevailing board lending rate with monthly rests.
For the next [x] months, the interest payable shall be at []% p.a. below the Bank's prevailing board lending rate with monthly rests.
Thereafter, the interest payable shall be at *[the Bank’s prevailing prime lending rate]/[[v]% p.a. over the Bank's prevailing prime lending rate]/[[v]% p.a. below the Bank's prevailing board lending rate]/the Bank’s prevailing board lending rate] with monthly rests.
[or]
[]% p.a. below the Bank's prevailing board lending rate with monthly rests.
[or]
[cost of funds]
[v]% p.a. over the Bank's prevailing Cost of Funds as determined by the Bank for interest periods of *[1, 2, 3, 6, 9 & 12 months] at the Borrower’s option.
[For Term Loan that has a duration beyond one year, the pricing should be as follows]
[v]% p.a. over (a) the Bank's prevailing Cost of Funds as determined by the Bank for interest periods of *[1, 2, 3, 6, 9 & 12 months] at your option and (b) the Cost of Liquidity Cost.
[or]
[swap offer rate]
[]% p.a. over the Bank’s prevailing Swap Offer Rate as determined by the Bank for interest periods of *[1, 2, 3, 6, 9 & 12 months] or such other interest periods as may be agreed by the Bank.
[SIBOR]
[]% p.a. over the Bank’s prevailing SIBOR as determined by the Bank for interest periods of *[1, 2, 3, 6, 9 & 12 months] or such other interest periods as may be agreed by the Bank.
[For Term Loan that has a duration beyond one year, the pricing should be as follows]
[v]% p.a. over (a) the Bank's prevailing SIBOR as determined by the Bank for interest periods of *[1, 2, 3, 6, 9 & 12 months] or such other interest periods as ay be agreed by the Bank and (b) the Cost of Liquidity Cost.
*[The Bank’s current *[prime lending rate]/[board lending rate] is []% p.a.]
The rate(s) applicable to the relevant Facility shall hereinafter be referred to as the "Prescribed Rate". The Bank shall, at its absolute discretion at any time upon notification (but without your consent), be entitled to revise the Prescribed Rate, the periodic rests applicable to the relevant Facility, and the commission, fee or bank charges in respect of any of the Facilities granted to you. Such notification shall be conclusive and binding on you.