Sponsor Support Agreement Template for Malaysia

The Sponsor Support Agreement is a fundamental document in project finance transactions under Malaysian law, typically used when a project company requires additional backing from its sponsor to secure financing or maintain project viability. This agreement becomes particularly relevant in large-scale infrastructure, energy, or development projects where lenders seek additional comfort beyond the project's standalone creditworthiness. The document outlines specific triggers for support, quantum of support required, and mechanisms for providing such support, all while ensuring compliance with Malaysian regulatory requirements. The agreement serves as a critical risk mitigation tool for lenders while providing a clear framework for sponsors to understand and manage their support obligations.

1. Parties: Identifies and defines the sponsor, beneficiary, and other relevant parties to the agreement

2. Background: Sets out the context of the agreement, including details of the underlying project or venture requiring support

3. Definitions and Interpretation: Defines key terms used throughout the agreement and establishes interpretation principles

4. Sponsor Support Obligations: Details the specific support commitments, whether financial or otherwise, that the sponsor is providing

5. Conditions Precedent: Lists conditions that must be satisfied before the support obligations become effective

6. Trigger Events: Specifies circumstances that activate the sponsor's obligation to provide support

7. Payment Mechanics: Details the procedures and timelines for providing financial support when required

8. Representations and Warranties: Standard representations and warranties from both parties

9. Covenants: Ongoing obligations of the parties throughout the agreement term

10. Events of Default: Circumstances constituting default and corresponding remedies

11. Term and Termination: Duration of the agreement and circumstances allowing early termination

12. Governing Law and Jurisdiction: Specifies Malaysian law as governing law and establishes jurisdiction for disputes

13. Notices: Communication procedures between parties

14. General Provisions: Standard boilerplate clauses including assignment, amendments, and severability