Document background
The Drawdown Loan Agreement is a fundamental financing document used when a lender provides credit facilities to a borrower with flexibility to draw funds in multiple tranches over time. This agreement type is commonly used in Hong Kong for corporate financing, project financing, and general commercial lending. It must comply with Hong Kong banking regulations and financial services requirements, including those related to interest rate calculations, security registration, and borrower protections. The document typically includes detailed provisions for drawdown mechanics, conditions precedent for each drawdown, specific representations and warranties, financial covenants, and events of default. It's particularly relevant for transactions where borrowers need funding flexibility and don't want to draw the entire loan amount at once.
