Document background
The Equity Commitment Letter is a crucial document in Philippine business transactions where formal confirmation of equity funding is required. It is commonly used in project finance, corporate acquisitions, and business expansions where investors or sponsors need to demonstrate their firm commitment to provide equity capital. The document typically precedes the full investment agreement and serves as a binding undertaking that can be enforced under Philippine law. An Equity Commitment Letter must comply with local corporate and securities regulations, including the Corporation Code, Securities Regulation Code, and where applicable, foreign investment restrictions. It's particularly important in scenarios where multiple stakeholders, such as lenders or regulators, require assurance about the availability and commitment of equity funding before proceeding with a transaction or project.
