Binding Comfort Letter


Binding Comfort Letter

Basic Info

  • Applicable Region UAE
  • Available Languages
    English & Arabic
  • Document No 0000621
  • Version V 1.0
  • Last Updated 09-20-2023
  • Reviews 0
Document Summary

The provided document is a binding comfort letter issued by a parent company or related entity to a lender, assuring the lender of its subsidiary's financial stability and commitment to meeting loan obligations.

 It confirms approval of the loan facility terms for the subsidiary, assures the subsidiary's financial stability, and commits to maintaining its financial resources.


The letter contains provisions that require the parent company to provide prior notice to the lender before disposing of its interest in the subsidiary and provides reassurance to the lender regarding the subsidiary's financial position.


This document is intended for use in the United Arab Emirates.


This document is provided for reference only and is not intended to be, and should not be considered, legal advice. Determinations about whether this document will be appropriate in your particular situation or jurisdiction should be made after consultation with a legal counsel. Kanoony will not assume any legal liability that may arise from the use of this document.

Before Execution

  • The information on this front page or contained in the headers and footers of this instrument are for guidance purposes only.
  • Please delete this front page together with the information contained in the headers, footers and the endnotes prior to circulating this letter. Where square brackets […] and highlights are used in the document, it indicates that there is missing or incomplete information which will need to be incorporated prior to signature.
  • Please remove the square brackets and all highlighting prior to signature.