Chapter 14

Project-Finance Loan Documentation

Apart from the financial structuring and modeling issues discussed in Chapter 12 and Chapter 13, the loan documentation also deals with the lenders’ additional controls and other requirements which will be imposed on the Project Company, as dealt with in this chapter. The end result is a loan agreement to which the Project Company and the lenders are parties, and ancillary security documentation.

The terms are commonly set out at first in a term sheet (§14.2), before being negotiated in detail (§14.3–§14.15). This chapter also covers two other key topics for the Project Company’s investors, which typically arise once the project is completed and operating—refinancing the Project Company’s debt (§14.16) ...

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