• Déc 7, 2020
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If there is a conflict between this agreement and the Common Terms Agreement, this agreement is a priority. An inter-signed agreement is reached between the main creditors of the project company. This is the agreement reached between the main creditors with respect to the financing of projects. The main creditors often enter into the Intercreditor agreement to regulate the terms and common relationships between lenders with respect to the borrower`s obligations. Where the financing of the project involves a mezzanine financing element, the Intercreditor Agreement establishes subordination conditions and other principles to be applied between priority debtors and mezzanine bond providers. Learn more about interconnection agreements in project funding documents. Funding documents – Financing documents cover project debt financing, including priority debts and all related facilities (. B, for example, a cost overrun or other monitoring mechanism). An operating and maintenance agreement (O-M) is an agreement between the project company and the operator.

The project company delegates the management of the operation, maintenance and often the performance of the project to a serious operator with industry expertise under the O-M agreement. The operator could be one of the sponsors of the project company or a third-party supplier. In other cases, the project company can operate and maintain the project itself and, finally, provide technical assistance to an experienced company under a technical assistance agreement. The basic content of an O-M contract is: LIBOR: The London Interbank Offered Rate (LIBOR) is a daily benchmark rate based on the rates at which banks can borrow unsecured funds from other banks. It is generally defined for the purposes of a facility agreement by reference to a screen interest rate (usually the British Bankers Association interest rate for the currency and the period in question) or at the base rate of the reference bank, which represents the average interest rate at which the Bank can borrow funds on the London interbank market. Default events: These will be voluminous. However, there are good reasons for them and, if negotiated properly, they should not allow the loan to be used unless there is a serious breach of the facility agreement. The loan contract in the financing of projects contains specific clauses that contractually meet the specific requirements of project and project financing documents.

Since the use of project financing relative to the borrower is limited or not, relying solely on the project as the sole source of loan repayment, the loan contract sets dividend restrictions, project metrics, ratios and agreements, as well as preconditions for terms and conditions and basic conditions. Learn more about the loan agreement in the project finance documents. There will also be delay provisions for breaches of the convention itself. They may grant time for remedial action on the part of a borrower and, in any event, apply only to substantial infringements or violations of the main provisions of the agreement. The provision for non-payment usually includes additional time to cover administrative or technical difficulties. Insolvency defaults should also provide reasonable time frames and include appropriate waivers for solvent restructurings, with the lender`s agreement. The most common project financing contract is the Engineering, Procurement and Construction (EPC) contract.