Co Financing Agreement for Australia

Co Financing Agreement Template for Australia

An Australian law-governed Co-Financing Agreement is a sophisticated financial instrument that establishes the terms and conditions under which multiple lenders agree to provide financing to a borrower. The agreement operates within Australia's robust financial services regulatory framework, including compliance with the Banking Act 1959 and Corporations Act 2001. It details the financing commitments, risk-sharing arrangements, security structures, governance mechanisms, and administration procedures that govern the relationship between all participating financial institutions and the borrower.

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What is a Co Financing Agreement?

The Co-Financing Agreement is utilized when multiple financial institutions collaborate to provide financing for large-scale projects or significant corporate requirements that exceed the capacity or risk appetite of a single lender. This document, governed by Australian law, establishes the framework for lenders to pool their resources while managing their collective exposure. It includes crucial elements such as commitment amounts, disbursement procedures, security sharing, decision-making processes, and risk allocation mechanisms. The agreement ensures compliance with Australian financial regulations, including the Banking Act 1959, Corporations Act 2001, and relevant ASIC requirements. It's particularly relevant for project financing, large corporate loans, and infrastructure development where risk sharing and coordinated lending approaches are essential.

What sections should be included in a Co Financing Agreement?

1. Parties: Identifies and provides details of all financing parties to the agreement

2. Background: Sets out the context and purpose of the co-financing arrangement

3. Definitions and Interpretation: Defines key terms and establishes interpretation principles

4. Financing Commitments: Details the amount and nature of each party's financing commitment

5. Conditions Precedent: Conditions that must be satisfied before the agreement becomes effective

6. Disbursement Procedures: Processes and requirements for drawing down funds

7. Interest and Fees: Specifications of interest rates, fees, and calculation methods

8. Repayment Terms: Schedule and mechanisms for repayment of the financing

9. Risk Sharing: Allocation of risks between co-financing parties

10. Governance and Decision Making: Procedures for joint decisions and administration of the financing

11. Representations and Warranties: Standard and specific representations made by each party

12. Covenants: Ongoing obligations of the parties during the term of the agreement

13. Events of Default: Circumstances constituting default and corresponding remedies

14. Administration: Day-to-day administration of the co-financing arrangement

15. Notices: Communication procedures and contact details

16. General Provisions: Standard legal provisions including governing law, jurisdiction, and amendments

What sections are optional to include in a Co Financing Agreement?

1. Security Arrangements: Required when the financing is secured by collateral or guarantees

2. Intercreditor Provisions: Needed when there are multiple classes of creditors or tranches

3. Currency Provisions: Required for cross-border financing with multiple currencies

4. Tax Provisions: Detailed tax arrangements when complex tax implications exist

5. Project-Specific Conditions: Required when financing is for a specific project with unique requirements

6. Regulatory Compliance: Special provisions for regulated industries or activities

7. Assignment and Transfer: Detailed provisions when transferability of interests is contemplated

8. Force Majeure: Required when specific external events could impact the financing arrangement

What schedules should be included in a Co Financing Agreement?

1. Schedule 1 - Financing Commitments: Detailed breakdown of each party's financing commitment

2. Schedule 2 - Conditions Precedent Documents: List of required documents and conditions

3. Schedule 3 - Disbursement Schedule: Timing and conditions for disbursement of funds

4. Schedule 4 - Repayment Schedule: Detailed repayment dates and amounts

5. Schedule 5 - Forms of Notices: Standard forms for various notices under the agreement

6. Schedule 6 - Security Details: Details of any security or collateral arrangements

7. Schedule 7 - Contact Details: Comprehensive contact information for all parties

8. Appendix A - Calculation Methodologies: Detailed methods for calculating interest, fees, and other amounts

9. Appendix B - Reporting Requirements: Templates and requirements for regular reporting

10. Appendix C - Governance Procedures: Detailed procedures for decision-making and governance

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Australia

Publisher

Genie AI

Document Type

Finance Agreement

Cost

Free to use
Relevant legal definitions
Accordion Facility
Account Bank
Additional Lender
Administrative Agent
Affiliate
Agreement
Applicable Law
Approved Purpose
Assignment
Australian Banking Regulations
Authorisation
Available Commitment
Base Rate
Borrower
Break Costs
Business Day
Calculation Date
Commitment
Commitment Fee
Compliance Certificate
Conditions Precedent
Confidential Information
Co-Financing Percentage
Co-Lenders
Costs
Default
Default Interest
Default Rate
Defaulting Lender
Disruption Event
Distribution Date
Drawdown
Drawdown Date
Drawdown Notice
Effective Date
Encumbrance
Event of Default
Facility
Facility Agent
Facility Agreement
Facility Office
Fee Letter
Final Maturity Date
Finance Documents
Finance Parties
Financial Close
Financial Indebtedness
Financial Statements
Financing Costs
First Drawdown Date
Force Majeure Event
Funding Rate
GST
Guarantee
Guaranteed Obligations
Illegality
Implementation Agreement
Increased Costs
Independent Technical Expert
Information Memorandum
Interest Payment Date
Interest Period
Interest Rate
Lenders
Lending Office
Majority Lenders
Margin
Material Adverse Effect
Notice
Obligor
Outstanding Amount
Participating Interest
Party
Payment Date
Permitted Encumbrance
PPSA
Primary Lender
Principal Outstanding
Project
Project Account
Project Documents
Qualifying Lender
Quote Day
Reference Banks
Repayment Date
Repayment Schedule
Replacement Lender
Required Lenders
Reserve Account
Security
Security Agent
Security Documents
Security Interest
Security Provider
Security Trust
Security Trustee
Syndicate
Tax
Technical Agent
Term
Transaction Documents
Transfer Certificate
Trust
Trust Deed
Utilisation
Utilisation Date
Utilisation Request
Clauses
Relevant Industries

Infrastructure

Real Estate

Energy

Mining

Transportation

Healthcare

Education

Renewable Energy

Agriculture

Manufacturing

Technology

Telecommunications

Relevant Teams

Legal

Finance

Treasury

Risk Management

Compliance

Credit

Corporate Banking

Project Finance

Investment

Operations

Relevant Roles

Chief Financial Officer

Finance Director

Treasury Manager

Legal Counsel

Corporate Lawyer

Risk Manager

Credit Manager

Relationship Manager

Investment Officer

Project Finance Manager

Compliance Officer

Financial Controller

Banking Executive

Loan Officer

Transaction Manager

Industries
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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