Project Finance Agreement for Germany

Project Finance Agreement Template for Germany

A comprehensive financing agreement governed by German law that establishes the terms and conditions for providing project-specific financing, typically on a limited or non-recourse basis. The agreement details the loan facility, security structure, conditions precedent, repayment terms, and project-specific requirements in accordance with German banking regulations and civil law. It incorporates specific provisions for risk allocation, monitoring mechanisms, and compliance with German and EU regulatory requirements, while establishing the rights and obligations of all parties involved in the project financing structure.

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What is a Project Finance Agreement?

A Project Finance Agreement is a sophisticated financing instrument used when substantial capital investment is required for specific large-scale projects. Under German law, this agreement serves as the primary document governing the relationship between lenders, project sponsors, and other stakeholders in project financing transactions. It is particularly utilized for infrastructure, energy, and large industrial projects where financing is primarily based on project cash flows rather than the sponsors' balance sheets. The agreement must comply with German banking regulations, civil law requirements, and relevant EU directives, while incorporating specific provisions for security interests under German law. The document typically includes detailed provisions for drawdown mechanics, security structure, covenant packages, and project monitoring requirements, tailored to meet both German legal requirements and international project finance standards.

What sections should be included in a Project Finance Agreement?

1. Parties: Identification of all parties to the agreement including lenders, borrowers, sponsors, and any guarantors

2. Background: Context of the project financing, including project description and purpose of the agreement

3. Definitions and Interpretation: Comprehensive definitions of terms used throughout the agreement and rules of interpretation

4. Facility and Purpose: Details of the credit facility, including amounts, tranches, and permitted uses of the funds

5. Conditions Precedent: Prerequisites that must be satisfied before drawdown of the facility

6. Drawdown Mechanics: Procedures and requirements for requesting and receiving loan disbursements

7. Repayment and Prepayment: Terms for scheduled repayments and voluntary/mandatory prepayment provisions

8. Interest and Fees: Interest calculation, payment periods, default interest, and all applicable fees

9. Security Structure: Overview of security package and ranking of security interests

10. Representations and Warranties: Standard and project-specific representations and warranties

11. Covenants: Positive, negative, and financial covenants applicable to the project and borrower

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

13. Changes to Parties: Rules regarding assignments, transfers, and syndication

14. Administration: Roles and responsibilities of facility agent and security trustee

15. Payment Mechanics: Technical aspects of making payments under the agreement

16. Notices: Communication procedures between parties

17. Governing Law and Jurisdiction: Choice of German law and jurisdiction provisions

What sections are optional to include in a Project Finance Agreement?

1. Public-Private Partnership Provisions: Required when project involves governmental entities or public infrastructure

2. Environmental and Social Requirements: Needed for projects with significant environmental impact or ESG requirements

3. Insurance: Detailed insurance requirements section needed for high-risk projects

4. Step-in Rights: Required for projects where lenders may need to take control

5. Export Credit Agency Provisions: Needed when export credit agencies are involved in financing

6. Intercreditor Provisions: Required when multiple classes of creditors are involved

7. Construction and Completion: Detailed section needed for projects in construction phase

8. Operation and Maintenance: Required for operational phase requirements in infrastructure projects

What schedules should be included in a Project Finance Agreement?

1. Schedule 1 - Lenders and Commitments: List of lenders and their respective commitment amounts

2. Schedule 2 - Conditions Precedent Documents: Detailed list of required documentation

3. Schedule 3 - Form of Drawdown Request: Standard form for requesting loan disbursements

4. Schedule 4 - Project Budget: Detailed project costs and funding requirements

5. Schedule 5 - Construction Schedule: Timeline for project construction and completion milestones

6. Schedule 6 - Financial Model: Base case financial projections and assumptions

7. Schedule 7 - Security Documents: Forms of security agreements and guarantees

8. Schedule 8 - Insurance Requirements: Required insurance coverage details

9. Schedule 9 - Form of Transfer Certificate: Standard form for transfers between lenders

10. Schedule 10 - Technical Specifications: Detailed technical requirements for the project

11. Appendix A - Key Project Contracts: Copies or summaries of material project agreements

12. Appendix B - Permits and Licenses: List and copies of required governmental approvals

13. Appendix C - Property Documents: Real estate documentation and land rights

14. Appendix D - Environmental Reports: Environmental impact assessments and compliance reports

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
Accordion Facility
Account Bank
Affiliate
Agent
Amended and Restated Agreement
Ancillary Facility
Anti-Corruption Laws
Applicable Law
Approved Project Budget
Assignment Agreement
Authorisation
Availability Period
Available Commitment
Available Facility
Base Case Model
Break Costs
Business Day
Cash Flow Available for Debt Service
Change of Control
Completion Date
Compliance Certificate
Confidential Information
Construction Contract
Construction Period
Debt Service Coverage Ratio
Default
Default Interest
Defaulting Lender
Disruption Event
Drawdown Date
Drawdown Request
Environmental Claim
Environmental Law
Environmental Permit
Event of Default
Existing Lender
Facility
Facility Office
Fee Letter
Finance Document
Finance Party
Financial Close
Financial Indebtedness
Financial Model
Financial Quarter
Financial Year
Force Majeure Event
German GAAP
Good Industry Practice
Group
Hedge Counterparty
Hedging Agreement
Holding Company
Increased Costs
Independent Technical Advisor
Information Memorandum
Insurance Advisor
Insurance Proceeds
Interest Payment Date
Interest Period
Lender
Loan
Loan to Value Ratio
Majority Lenders
Margin
Material Adverse Effect
New Lender
O&M Agreement
Original Financial Statements
Original Jurisdiction
Participating Member State
Party
Permitted Security
Project
Project Accounts
Project Assets
Project Company
Project Contracts
Project Costs
Project Documents
Project Site
Qualifying Lender
Quote Day
Reference Banks
Reference Rate
Relevant Market
Repayment Date
Repeating Representations
Replacement Lender
Representative
Security
Security Agent
Security Documents
Security Period
Sponsor
Subsidiary
Tax
Technical Advisor
Technical Description
Term
Total Commitments
Transfer Certificate
Transfer Date
Unpaid Sum
Utilisation
VAT
Clauses
Relevant Industries

Infrastructure

Energy and Utilities

Renewable Energy

Transportation

Real Estate Development

Industrial and Manufacturing

Mining and Natural Resources

Healthcare Infrastructure

Telecommunications

Waste Management

Public Infrastructure

Maritime and Ports

Relevant Teams

Legal

Finance

Treasury

Risk Management

Compliance

Project Development

Corporate Finance

Investment Banking

Credit Risk

Operations

Technical Advisory

Environmental and Social

Relevant Roles

Chief Financial Officer

Finance Director

Project Finance Manager

Legal Counsel

Senior Banking Lawyer

Project Manager

Risk Manager

Investment Director

Treasury Manager

Compliance Officer

Corporate Finance Director

Senior Loan Officer

Project Development Director

Infrastructure Finance Specialist

Investment Banker

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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