Document background
The Project Financing Agreement is a sophisticated financing instrument used in Belgium for large-scale project developments where financing is primarily secured by the project's assets and cash flows. This document is essential when implementing limited or non-recourse financing structures, typically involving an SPV as the borrower. It comprehensively addresses all aspects of the financing arrangement, including facility terms, security packages, project undertakings, and risk allocation, while ensuring compliance with Belgian legal requirements and EU regulations. The agreement is particularly crucial for infrastructure, energy, and industrial projects where significant capital investment is required and multiple stakeholders are involved. Key considerations under Belgian law include security interest perfection requirements, registration obligations, and specific regulatory approvals depending on the project sector.
