Co Financing Agreement for Germany

Co Financing Agreement Template for Germany

A Co-Financing Agreement under German law is a comprehensive legal document that establishes the terms and conditions for multiple parties to jointly provide financing for a specific project or venture. The agreement is governed by German law, particularly the German Civil Code (BGB) and Banking Act (KWG), and incorporates specific requirements for financial cooperation and security arrangements under German jurisdiction. It details the contributions of each financier, disbursement mechanisms, repayment terms, security arrangements, and the relationships between co-financiers, while ensuring compliance with German banking regulations and financial services laws.

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What is a Co Financing Agreement?

The Co-Financing Agreement is a crucial document used when multiple financial institutions or investors collaborate to fund large-scale projects or ventures under German law. This agreement type is particularly relevant for complex financing arrangements where the funding requirements exceed the capacity or risk appetite of a single lender, or where different types of financiers (such as commercial banks, development banks, and export credit agencies) need to work together. The document addresses the specific requirements of German banking and financial services regulations, including the German Banking Act (KWG) and Civil Code (BGB). It typically includes detailed provisions for contribution ratios, disbursement procedures, security sharing, inter-creditor relationships, and decision-making processes. The agreement is essential for projects requiring substantial capital investment and is structured to ensure clear rights and obligations among all participating financiers while maintaining compliance with German regulatory requirements.

What sections should be included in a Co Financing Agreement?

1. Parties: Identification of all parties to the agreement, including all co-financiers and the recipient

2. Background: Context of the financing arrangement, purpose of the project, and general intent of the parties

3. Definitions and Interpretation: Definitions of key terms and interpretation rules for the agreement

4. Purpose and Scope: Detailed description of the project or venture being financed and scope of the co-financing arrangement

5. Financing Structure: Overview of the total financing amount, contribution of each co-financier, and financing terms

6. Conditions Precedent: Conditions that must be satisfied before the financing becomes effective

7. Disbursement Procedures: Mechanics and procedures for disbursement of funds

8. Repayment Terms: Terms and conditions for repayment of the financing

9. Interest and Fees: Interest rates, calculation methods, and applicable fees

10. Ranking and Security: Priority ranking of different financiers and security arrangements

11. Representations and Warranties: Statements of fact and assurances given by the parties

12. Covenants: Positive and negative obligations of the parties

13. Monitoring and Reporting: Requirements for project monitoring and financial reporting

14. Events of Default: Circumstances constituting default and consequences

15. Remedies: Available remedies in case of default or breach

16. Decision Making: Procedures for decision-making among co-financiers

17. Administration: Administrative arrangements and roles of parties

18. Confidentiality: Provisions regarding confidential information

19. Governing Law and Jurisdiction: Choice of law and jurisdiction for dispute resolution

20. Miscellaneous: Standard boilerplate provisions including notices, amendments, and severability

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

1. Agent Provisions: Required when a facility agent is appointed to manage the co-financing arrangement

2. Public Sector Requirements: Needed when public sector funding is involved, including specific compliance requirements

3. Intercreditor Provisions: Detailed provisions governing the relationship between creditors, required for complex multi-lender structures

4. Environmental and Social Requirements: Required for projects with significant environmental or social impact

5. Currency Provisions: Needed for cross-border financing involving multiple currencies

6. Tax Provisions: Detailed tax-related provisions required for cross-border financing or specific tax structures

7. Step-In Rights: Required when certain co-financiers need the right to take control under specific circumstances

8. Insurance Requirements: Detailed insurance provisions for projects requiring specific insurance coverage

What schedules should be included in a Co Financing Agreement?

1. Schedule 1 - Project Description: Detailed description of the project being financed

2. Schedule 2 - Payment Schedule: Detailed disbursement and repayment schedules

3. Schedule 3 - Conditions Precedent Documents: List of required documents and conditions to be satisfied

4. Schedule 4 - Form of Disbursement Request: Template for requesting disbursements

5. Schedule 5 - Security Documents: List and copies of security documents

6. Schedule 6 - Reporting Requirements: Templates and requirements for periodic reporting

7. Schedule 7 - Financial Covenants: Detailed financial covenants and calculation methodologies

8. Schedule 8 - Contact Details: Contact information for all parties and authorized representatives

9. Appendix A - Financial Model: Detailed financial projections and assumptions

10. Appendix B - Technical Specifications: Technical details of the project or venture

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

Germany

Publisher

Genie AI

Document Type

Financing Agreement

Cost

Free to use
Relevant legal definitions
Clauses
Relevant Industries

Infrastructure

Real Estate Development

Renewable Energy

Manufacturing

Transportation

Healthcare

Technology

Telecommunications

Public Infrastructure

Industrial Development

Commercial Real Estate

Energy and Utilities

Relevant Teams

Legal

Finance

Treasury

Risk Management

Compliance

Corporate Development

Project Management

Investment Banking

Credit

Operations

Relevant Roles

Chief Financial Officer

Finance Director

Legal Counsel

Project Finance Manager

Investment Manager

Treasury Manager

Risk Manager

Compliance Officer

Banking Relationship Manager

Project Director

Corporate Finance Manager

Senior Loan Officer

Structured Finance Manager

Investment Banker

Financial Controller

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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