Banking & Finance

The lawyers at LMA are highly recommended in the areas of banking, finance and securitization and we are consistently ranked as the top tier law firm in this area. Our lawyers have strong expertise in structuring corporate and consumer financing, project financing, leveraged and acquisition financing as well as electronic-banking. We are renowned experts in the area of Islamic and Sharia compliant modes of financing and we routinely advise major national and international banks on their Islamic banking products and documentation. With a comprehensive understanding of financing and security arrangements (including enforcement), debt to equity conversions and syndicated and substantial loan transactions we can draft, negotiate and advise upon extensive suites of documentation.

We are regularly engaged by both local and foreign banks and other non-banking financial institutions operating throughout Pakistan, to provide a range of legal services relating to banking, finance and securities as well as providing regulatory and compliance guidance to various commercial banks. We also regularly advise the State Bank of Pakistan in various banking and regulatory matters. We provide services in respect of standardized and customized documentation for branch banking, corporate banking, and consumer finance, SME financing, syndicate financing, insolvency and re-structuring as well as issuance of guarantees and letters of credit in Pakistan.

We have advised various banks on the introduction of electronic payment systems, electronic banking platforms as well as other e-banking services, acquisition and implementation of core banking applications and have structured Islamic banking documents for use in Pakistan such as morabaha, musharaka, diminishing musharaka for assets and immoveable property, istisna and ijarah. Our team is well equipped and has undertaken numerous due diligence/ legal audit assignments in respect of banking/ finance and security documents pertaining to consumer and corporate clients of banks.

We also advise on derivate transactions in Pakistan, including FX options, repo transactions, and other ISDA documentation in view of the current regulatory framework.

LMA has also acted as lead counsel and has drafted the finance and security documentation in respect of syndicated conventional and Islamic facilities for the amount of PKR 5 Billion extended by Pak-Brunei led syndicates to Martin Dow Limited for the acquisition of Merck (Pvt.) Limited.

LMA also drafted all the finance and security documentation in respect of a syndicated finance facility of PKR 2 billion for the acquisition of asset and properties of Dadabhoy Group.

  • LMA has advised various banks, including bank AL Habib and Faysal Bank on the implementation structure and documentation required in respect of the relaxation in loan payments and deferrals advised by the State Bank of Pakistan for the benefit of the consumer as well as the corporate sectors, due to the unprecedented times and conditions arising as a result of the current pandemic. LMA has advised clients on the relevant Prudential Regulations issued by the State Bank together with the provisions of the Electronic Transactions Ordinance and other related laws in respect of the matter to enable clients and their customers to benefit from the relaxation in the most suitable manner.

  • LMA conducted an extensive legal audit of the finance and security documents of over 600 customers of Bank AL Habib from its loan portfolio for Southern, Central and Northern regions, including conventional financing and lendings which are extended through Shariah compliant modes of financing (Islamic Financing). The review included review of finance documents, security documents, property documents, board resolutions, internal approvals and search reports of the customers to ensure that the documents were in order and in accordance with applicable laws, rules and regulations. LMA has been issuing legal audit reports for each customer of Bank AL Habib which, inter alia, provide the risk analysis in respect of each discrepancy. As part of the legal audit, LMA was also tasked with highlighting critical portfolios and to advise on the measures required to be taken to rectify the discrepancies.

  • Prepared property, finance and security documentation for finance facilities to be disbursed to various companies by Pak Brunei. LMA has prepared property, finance and security documentation for facilities to be disbursed to various companies including but not limited to Nishat Power Limited, Master Textile (Private) Limited, Pakistan Petroleum Limited, JDW Sugar Mills Limited, Master Power and advised on ancillary matters including on the finance and security structure in respect of transactions involving various term finance, lease finance and running finance facilities proposed to be disbursed to numerous Companies, Partnerships and Proprietorships cumulatively amounting to approximately Rupees 4.5 billion over the past year. The complex security structure involved review of documents pertaining to multiple properties located in Karachi, Lahore, Islamabad, Thatta, Nooriabad etc. and drafted multiple agreements to transfer, agreements to transfer back, license agreements, lease agreements, subordination agreement, letters of charges, letters of indemnity cum undertaking, letters of hypothecation, memorandum of constructive deposit of title deeds, personal guarantees.

  • Prepared property, finance and security documentation for finance facilities to be disbursed to various companies by Pak Brunei. LMA has prepared property, finance and security documentation for facilities to be disbursed to various companies including but not limited to Nishat Power Limited, Master Textile (Private) Limited, Pakistan Petroleum Limited, JDW Sugar Mills Limited, Master Power and advised on ancillary matters including on the finance and security structure in respect of transactions involving various term finance, lease finance and running finance facilities proposed to be disbursed to numerous Companies, Partnerships and Proprietorships cumulatively amounting to approximately Rupees 4.5 billion over the past year. The complex security structure involved review of documents pertaining to multiple properties located in Karachi, Lahore, Islamabad, Thatta, Nooriabad etc. and drafted multiple agreements to transfer, agreements to transfer back, license agreements, lease agreements, subordination agreement, letters of charges, letters of indemnity cum undertaking, letters of hypothecation, memorandum of constructive deposit of title deeds, personal guarantees.

  • The firm has advised JS Bank on restructuring and revamping of their respective standard conventional finance agreements, security instruments and other ancillary documentation in line with the regulatory and legal requirements in Pakistan. These include standard master documentation for various new products such as agri finance, gold finance, yacht financing and advance salary facility. We have prepared standard finance and security documentation in respect of the said product lines for the Bank. We have also revamped standard documentation in respect of various categories of loans and advances such as term finance, working capital finance, long term finance, export finance, import finance, auto-lease finance, house finance, personal loan finance and have also drafted standard security documents pertaining, inter alia, to mortgage, hypothecation, pledge, set-off, guarantees and indemnities.

  • The firm has been appointed to act on behalf of 16 financial institutions in their capacity as working capital lenders to the Hub Power Company in relation to an Inter Finance Parties Agreement. The agreement is intended to regulate the enforcement of securities granted by Hubco to a security trustee under project financing arrangements entered into in 1994 at the time that Hubco was established, which initially only catered to the needs of Hubco’s senior project financiers. The facilities granted by those senior lenders have now been settled in full and the agreement is intended to overhaul the documentation in order to reflect the reality of Hubco’s current financing arrangements.

  • We are representing a consortium of banks led by Faysal Bank Limited, which has been appointed as the Inter-creditor Agent, the Investment Agent and the trustee in respect of a syndicate financing in respect of development and commissioning of a 5000 MT ethanol storage/ handling project being set up by Premier Mercantile Services (Pvt.) Ltd., which includes financing through mark-up based facility, L/C facility and musharaka based facility. LMA is the transaction counsel acting on behalf of the consortium and is responsible to draft all finance, security and ancillary documentation in respect of the transaction, which also addresses the recent temporary refinancing schemes of the State Bank of Pakistan and has a parallel structure of KIBOR based and SBP refinance rate based financing. Besides drafting the conventional facility, the musharaka facility documents, and the security documents, LMA is also drafting sponsor support agreement, trust deed and inter-creditor agreement. LMA is also advising on the property which shall be the subject matter of security by way of equitable mortgage.

  • We have advised Habib Bank, Bank AL Habib, Faysal Bank and Soneri Bank and drafted standard documentation relating to various types of financing to be extended by the said clients under Shariah compliant modes of financing, including morabaha, modaraba, tijarah, currency salam, istisna and Islamic long term financing in respect of the State Bank of Pakistan’s concessional refinance.

Liaquat H. Merchant

Chairman & Managing Partner
l.merchant@lma.com.pk
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Faresa Jafarey Ahsan

Senior Partner
f.ahsan@lma.com.pk
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Hira Ahmad

Partner
h.ahmad@lma.com.pk
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