Document background
The Project Finance Loan Agreement is a sophisticated financing instrument used in Nigeria for large-scale infrastructure, industrial, and development projects where the loan is primarily secured by the project's assets and cash flows. This document is essential when implementing complex project financing structures in Nigeria, particularly where significant capital investment is required and multiple stakeholders are involved. It must comply with Nigerian banking regulations, including the Banks and Other Financial Institutions Act (BOFIA) 2020, while incorporating international best practices in project finance. The agreement typically includes detailed provisions for project monitoring, account structures, security arrangements, and specific covenants tailored to the project's nature. It's particularly relevant for transactions involving both local and international lenders, requiring careful consideration of Nigerian foreign exchange regulations and local content requirements.
