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Bridge Loan Agreement Template for Philippines

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Key Requirements PROMPT example:

Bridge Loan Agreement

"I need a Bridge Loan Agreement under Philippine law for a PHP 50 million secured facility with a syndicate of three local banks, to be used for completing a real estate development project in Manila, with the loan to be repaid from permanent financing expected by March 2025."

Document background
A Bridge Loan Agreement is essential for transactions requiring interim financing solutions in the Philippine market. This document is typically used when a company needs immediate funding to cover short-term obligations while arranging longer-term financing, completing a sale process, or waiting for an anticipated liquidity event. The agreement must comply with Philippine banking and lending regulations, including the New Central Bank Act (Republic Act No. 7653) and Truth in Lending Act (Republic Act No. 3765). Bridge loans are common in corporate acquisitions, real estate transactions, and project financing, where timing gaps between capital needs and permanent financing must be addressed. The document includes crucial provisions for loan disbursement, interest calculation, repayment terms, security arrangements (if any), and standard representations and warranties tailored to Philippine law requirements.
Suggested Sections

1. Parties: Identification of the lender(s) and borrower(s) with complete legal names and addresses

2. Background: Context of the bridge loan, including purpose and relationship to any anticipated future financing

3. Definitions and Interpretation: Definitions of key terms and interpretation rules for the agreement

4. The Facility: Core loan terms including amount, purpose, and availability period

5. Interest: Interest rate, calculation method, payment dates, and default interest provisions

6. Repayment and Prepayment: Terms for repayment, prepayment rights and obligations, and related fees

7. Conditions Precedent: Conditions that must be satisfied before drawdown

8. Representations and Warranties: Borrower's statements of fact and assurances about its legal and financial status

9. Covenants: Positive and negative obligations of the borrower during the loan term

10. Events of Default: Circumstances constituting default and consequences

11. Changes to Parties: Rules for assignment and transfer of rights and obligations

12. Administration: Practical aspects of loan administration including payments and notices

13. Governing Law and Enforcement: Choice of law, jurisdiction, and enforcement provisions

14. Boilerplate: Standard contractual provisions including severability, amendments, and counterparts

Optional Sections

1. Security: Required if the loan is secured - details of security arrangements and enforcement rights

2. Conversion Rights: Include if the bridge loan can be converted into equity or other securities

3. Syndication Provisions: Required for multiple lenders - includes facility agent appointment and lending proportions

4. Subordination: Include if the bridge loan is subordinated to other debt

5. Guarantee: Required if there are guarantors supporting the borrower's obligations

6. Future Financing Commitments: Include if there are agreements regarding future financing rounds

7. Exit Events: Special provisions for repayment upon specific exit events like IPO or sale

Suggested Schedules

1. Schedule 1 - Conditions Precedent Documents: Detailed list of required documents and conditions to be satisfied before drawdown

2. Schedule 2 - Form of Drawdown Request: Template for the borrower to request loan disbursement

3. Schedule 3 - Repayment Schedule: If applicable, detailed schedule of repayment dates and amounts

4. Schedule 4 - Security Documents: If secured, list and copies of security documents

5. Schedule 5 - Financial Covenants: Detailed financial covenants and calculation methodologies

6. Appendix A - Existing Indebtedness: List of borrower's existing debt obligations

7. Appendix B - Corporate Structure: Organization chart showing borrower's corporate structure

8. Appendix C - Form of Compliance Certificate: Template for periodic compliance certification by borrower

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions
Clauses

































Relevant Industries

Banking & Financial Services

Real Estate & Property Development

Technology & Startups

Infrastructure & Construction

Manufacturing

Energy & Resources

Healthcare

Telecommunications

Retail & Consumer

Transportation & Logistics

Relevant Teams

Legal

Finance

Treasury

Compliance

Risk Management

Corporate Secretariat

Credit

Business Development

Corporate Finance

Investment

Relevant Roles

Chief Financial Officer

Finance Director

Treasury Manager

Corporate Lawyer

Legal Counsel

Banking & Finance Attorney

Risk Manager

Compliance Officer

Corporate Secretary

Investment Manager

Financial Controller

Credit Risk Officer

Business Development Director

Transaction Manager

Industries







Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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