Document background
The Project Finance Agreement is a specialized financing document used when funding large-scale infrastructure, energy, or other capital-intensive projects in Australia. It is utilized when the financing is primarily based on the project's cash flows, with project assets serving as collateral. This agreement is essential for projects requiring substantial capital investment where lenders look primarily to the project's revenue for repayment. The document must comply with Australian federal and state regulations, including the Corporations Act 2001, Banking Act 1959, and relevant securities legislation. It typically includes comprehensive provisions for project monitoring, risk allocation, security arrangements, and specific performance criteria. The agreement is structured to protect lenders while providing borrowers with the necessary flexibility to construct and operate the project successfully.
