Document background
The Project Finance Agreement is a fundamental document used in structured finance transactions where financing is primarily secured by the project's assets and cash flows rather than the sponsors' balance sheets. This agreement, governed by Swiss law, serves as the primary financing document that outlines the terms and conditions under which lenders provide funding to the project company. It is particularly relevant for large-scale infrastructure, energy, and industrial projects where significant capital investment is required. The document incorporates comprehensive provisions addressing facility terms, security arrangements, project implementation requirements, and risk allocation mechanisms, all while ensuring compliance with Swiss legal requirements and banking regulations. The agreement is typically used in conjunction with various ancillary documents including security agreements, direct agreements, and project contracts to create a complete project finance structure.
