Project finance—key finance documents


Published by a ÑÇÖÞÉ«ÇéÍø Banking & Finance expert
Practice notes
Sustainable Business Toolkit

Project finance—key finance documents


Published by a ÑÇÖÞÉ«ÇéÍø Banking & Finance expert

Practice notes
Sustainable Business Toolkit
imgtext

Documents for a typical project finance transaction can be split into three broad categories:

  1. •

    finance documents—the finance documents govern the debt financing for the project including the senior debt and any related facilities (eg a cost overrun facility or other standby facility) or ancillary facilities (eg a letter of credit facility or a working capital facility)

  2. •

    project documents—the project documents are the contracts which underpin the project itself and they typically include the concession agreement (if any), construction contract, the operation and maintenance contract and any supply and offtake contracts (for more information, see: Project documents—issues for lenders—overview), and

  3. •

    shareholder or equity documents—the shareholder or equity documents govern the terms of the equity investment and the relationship between the investors in the project (for more information on equity support in project finance, see Practice Note: Equity support in project finance)

This Practice Note examines the first category of documents, the finance documents. It explains what they are and some of the key terms in them.

Overview

Powered by Lexis+®
Jurisdiction(s):
United Kingdom
Key definition:
Finance documents definition
What does Finance documents mean?

Typically refers to all the documents that make up the terms of the financing arrangement between the borrower and lender(s). The term is normally defined in the facility agreement and generally includes the facility agreement, security documents, certain side letters to which a finance party is party and intercreditor agreements or deeds of priority

Read more readmore

Popular documents

Project finance—undertakings (covenants)

Project finance—undertakings (covenants)Undertakings, or covenants as they are sometimes called, are promises given by the borrower(s) and any obligors to the lender (or finance parties in a syndicated facility) to perform or not perform certain actions. The borrower may also undertake to procure

Offtake contracts—key issues for project finance lenders

Offtake contracts—key issues for project finance lendersMost projects are underpinned by a complex web of contractual relationships between all the parties involved in the project (eg the project company, equity investors, contractors, sub-contractors, offtakers and suppliers). These documents are

What is the difference between an appeal and a review?

What is the difference between an appeal and a review?What is an appeal?An appeal in insolvency proceedings is no different to an appeal in normal litigation. An appeal will be allowed only if the appeal court is satisfied that the decision of the lower court was 'wrong' or 'unjust because of a

Late payment penalties—inheritance tax

Late payment penalties—inheritance taxWhile interest often accrues on overdue tax, the late payment of certain taxes may also attract a penalty. For information on the interest accruing on overdue tax, see Practice Notes: IHT—payment deadlines on death—Interest on IHT and Interest on late paid