Document background
A Refinance Agreement is a critical document used when parties wish to restructure or replace existing financial obligations with new financing arrangements in the UAE. This document type is particularly relevant in the UAE market where refinancing activities are subject to specific regulatory oversight from the UAE Central Bank and must comply with local banking regulations. The Refinance Agreement includes detailed provisions covering the termination or modification of existing facilities, establishment of new credit terms, security arrangements, and compliance requirements. It may need to accommodate both conventional and Islamic finance structures, which is particularly relevant in the UAE context. The agreement is typically used when borrowers seek more favorable terms, need to restructure their debt, or want to consolidate multiple facilities. It requires careful consideration of UAE civil and commercial laws, banking regulations, and where applicable, free zone regulations.
