Document background
The Common Terms Agreement serves as the primary document in complex financing arrangements where multiple lenders provide various facilities to a borrower. It is particularly utilized in Nigeria for large-scale project financing, corporate lending, and infrastructure development. The document consolidates common terms across all facility agreements, reducing documentation complexity and ensuring consistency in interpretation. It addresses key Nigerian regulatory requirements, including those from the Central Bank of Nigeria, Securities and Exchange Commission, and other relevant authorities. The agreement typically includes detailed provisions for financial covenants, information requirements, representations and warranties, and events of default, all tailored to comply with Nigerian law and market practice. This type of agreement is essential when structuring syndicated loans, particularly in transactions involving multiple lenders, facilities, or complex security arrangements.
