Document background
The Project Finance Agreement is a fundamental document used in complex project financing transactions under Danish law, typically employed when significant capital investment is required for large-scale infrastructure, energy, or industrial projects. This agreement serves as the primary financing document between the project company (borrower) and its lenders, outlining the terms and conditions of the facility, security arrangements, and the respective rights and obligations of all parties involved. It is specifically tailored to comply with Danish legal requirements and market practices, incorporating necessary provisions for regulatory compliance, environmental standards, and corporate governance. The document is essential for projects where financing is primarily based on project cash flows and assets, with limited or no recourse to the sponsors. The agreement includes comprehensive provisions for risk allocation, project monitoring, and control mechanisms, making it suitable for both greenfield and brownfield projects across various sectors.
