Loan Commitment

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Loan Commitment

Commitment to a borrower by a lending institution that it will loan a specific amount at a certain rate on a particular piece of real estate. Such commitment is usually limited to a specified time period (e.g., four months), which is commonly based on the estimated time that it will take the borrower to construct or purchase the home contemplated by the loan.

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In addition, the company said that it expects to originate senior commercial real estate loans with total commitments of over USD450m and total funding of over USD390m in the second quarter of 2019, subject to customary closing conditions and fallout as of Friday; and closed senior loans with total commitments of over USD120m and funded over USD145m of loan balances such as prior loan commitments of more than USD45m.
BANKING AND CREDIT NEWS-June 7, 2019-TPHL secures USD 720m in conditional term loan commitments
The study examined the effectiveness of domestic prudential policies in restraining growth of real bank loan commitments and in preserving the quality of bank loans in the Philippines using panel bank data regression from the first quarter of 2014 to the fourth quarter of 2017.
In an open letter, Chandra did not disclose the exact quantum of debt, limiting himself to say that rolling over debt has been difficult since the ILandFS crisis and the group has been able to honour its loan commitments till December.
Reviewed loan commitments were stratified by the severity of their risk--special mention, substandard, doubtful, or loss, the last three of which are known as classified.
Apollo Commercial Real Estate Finance announced ARI committed to $3.0 billion of new investments in 2018, nearly a 50% increase over 2017 loan commitments. "ARI committed to $3.0 billion of commercial real estate loans secured by institutional quality properties throughout the United States and the United Kingdom in 2018, a record year for the Company," said Stuart Rothstein, CEO and President of ARI.
The credit facility also provides for borrowing capacity of up to $200 million in various foreign currencies, and a $500 million accordion feature to increase the credit facility up to $2.02 billion, subject to obtaining additional loan commitments. From a covenant perspective, the Cap Rate for assessing gross asset values improved to 7.75% from 8.5% and certain covenants were adjusted to provide greater flexibility or eliminated altogether.
The new agreement consists of a USD 1.7 billion revolving credit facility, which includes a USD 750 million multicurrency borrowing sublimit, and term loan commitments totaling USD 1.3 billion.
Air Canada also received loan commitments for a USD800 million term loan, maturing in 2023, together with a new, undrawn USD300 million revolving credit facility expiring in 2021.
UK-based financial services group The Royal Bank of Scotland Group plc (NYSE: RBS) has entered into a definitive agreement with China Construction Bank Corp., Hong Kong Branch for the sale of a portfolio of corporate loan commitments related to its banking business in China, booked offshore, the group said.
Besides providing liquidity through loans, banks provide loan commitments. These represent a promise to fund future credit demand by borrowers.
gategroup is asking lendors to extend the term loan commitments to May 2016 and the revolving credit facility commitments to May 2015.