Document background
The Co-Financing Agreement is utilized when multiple financial institutions collaborate to provide financing for large-scale projects or significant corporate requirements that exceed the capacity or risk appetite of a single lender. This document, governed by Australian law, establishes the framework for lenders to pool their resources while managing their collective exposure. It includes crucial elements such as commitment amounts, disbursement procedures, security sharing, decision-making processes, and risk allocation mechanisms. The agreement ensures compliance with Australian financial regulations, including the Banking Act 1959, Corporations Act 2001, and relevant ASIC requirements. It's particularly relevant for project financing, large corporate loans, and infrastructure development where risk sharing and coordinated lending approaches are essential.
