Project finance

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The difficulties in proving guarantees were signed (Lynch v Cadwallader)

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Negative pledges

This Practice Note examines:•why negative pledge clauses are used in commercial transactions •the consequences of breaching negative pledge...

Sources of Shari'ah

IntroductionShari'ah (also Sharia, Shariah or Shari’a) (literally, in Arabic, 'the path towards the watering place') or Islamic law is the legal...

Term Loan B facilities

This Practice Note discusses Term Loan B (TLB) facilities which frequently appear as a tranche of senior facilities in syndicated loans in leveraged...

ISDA definitions

The vast majority of derivative transactions are documented by standard documentation developed and published by the International Swaps and...

Practice notes

Direct agreements in project finance transactions

What is a direct agreement?Direct agreements are very common in project finance transactions. A direct agreement is an agreement which gives the...

9th Nov

Practice notes

What is securitisation?

BREXIT: As of 31 January 2020, the UK is no longer an EU Member State, but has entered an implementation period during which it continues to be...

9th Nov

Practice notes

Overdrafts, term loans and revolving credit facilities

This Practice Note explains the features of three common types of loan facility:•overdrafts•term loans, and•revolving credit facilities (RCFs)It also...

9th Nov

In-house

Practice notes

Introduction to fund finance—capital call facilities

What is a 'capital call facility'?A capital call facility is a form of finance provided by a lender to a fund and typically secured against investors’...

Produced in partnership with Peter Olds of Cleary, Gottlieb, Steen & Hamilton 12th Jan

Practice notes

The facility agent

BREXIT: As of 31 January 2020, the UK is no longer an EU Member State, but has entered an implementation period during which it continues to be...

9th Nov

Practice notes

Subordination

Subordination is a way of changing the priority of claims against a debtor so that one creditor or group of creditors (the junior creditor(s)) agree...

9th Nov

Practice notes

Crystallisation of floating charges

The key feature of a floating charge is that, until it crystallises, the chargor is entitled to deal with the charged assets in the normal course of...

9th Nov

Practice notes

On demand guarantees and bonds

Coronavirus (COVID-19): The ICC has issued a guidance paper on the impact of COVID-19 on trade finance transactions issued subject to ICC rules. For...

9th Nov

Practice notes

Increased costs

This Practice Note considers the costs that a lender operating in the interbank market will incur when providing funding to a borrower and the steps...

9th Nov

Practice notes

Key issues in loan transfers

There are times when a lender might want to get back some of the money it has lent to a borrower before the borrower is due to repay it.If the...

9th Nov

Practice notes

Debt securities—10b-5 letters

A 10b-5 letter (also referred to as a 'disclosure letter') is a letter delivered to the underwriters by issuer's and underwriters' counsel in...

Produced in partnership with Charles Farnsworth of Baker McKenzie and Adam Farlow of Baker McKenzie 12th Jan

Practice notes

Market disruption clauses in facility agreements

In summary, a market disruption clause sets out how interest is calculated for a loan if a lender’s cost of funding the loan is in excess of London...

9th Nov

Practice notes

Secondary debt trading—completing the trade confirmation

The majority of secondary debt trades are conducted by telephone or by email. Following the trade call or email exchange, the parties will document...

9th Nov

Practice notes

Drafting or reviewing legal opinions in loan transactions

Legal opinions are one of the key documentary conditions precedent in loan transactions. The legal opinion is a letter which sets out opinions as to...

9th Nov

Precedents

Director’s certificate for a bilateral loan: borrower

[insert date]To:[insert full name and address of lender]Dear [insert full name of lender]I am a director of [insert full name of borrower] (the...

9th Nov

Practice notes

Project finance—key finance documents

Documents for a typical project finance transaction can be split into three broad categories:•finance documents—the finance documents govern the debt...

9th Nov

Most recent Project finance content

Practice notes

Common Islamic finance structures used in project finance

This Practice Note considers the various Islamic or Shari’ah compliant structures typically seen in project financings and looks at the documentation...

17th Jan

Practice notes

Project finance—meaning of completion and its effect

Projects involving the development of a new asset or facility (known as 'greenfield' projects) are generally split into two phases: construction and...

17th Jan

Practice notes

Project finance—financial covenants

For project finance lenders, understanding the financial health of a project is critical. In a typical project finance transaction, the project is the...

17th Jan

Practice notes

Project finance—events of default

Many of the usual events of default for a typical syndicated loan facility will also apply (in some form) to a project finance transaction. For...

17th Jan

Practice notes

Small Business, Enterprise and Employment Act 2015 (SBEEA 2015) for finance lawyers [Archived]

ARCHIVED: This Practice Note has been archived and is not updated. It is for background information only.IntroductionDespite its name, the provisions...

17th Jan

Practice notes

Project finance—key finance parties

The main finance parties in a typical project finance transaction are the same as those involved in any syndicated lending transaction, ie:•the...

17th Jan

Practice notes

Project accounts and the accounts agreement

In a typical project finance transaction, the lenders rely heavily on the revenues generated by the project for repayment of the loan. As a result,...

17th Jan

Practice notes

Project finance—key project parties

The main project parties in a typical project finance transaction are:•the sponsor(s)•the project vehicle (referred to in this Practice Note as the...

17th Jan

Practice notes

Government concessions—key issues for project finance lenders

A typical project is underpinned by a complex web of contractual relationships between the parties involved in the project eg the project company,...

17th Jan

Practice notes

A beginner’s guide to project finance

IP COMPLETION DAY: 11pm (GMT) on 31 December 2020 marks the end of the Brexit transition/implementation period entered into following the UK’s...

17th Jan

Practice notes

Construction contracts—key issues for project finance lenders

Most projects are underpinned by a complex web of contractual relationships between all the parties involved in the project (eg the project company,...

17th Jan

Practice notes

Equity support in project finance

In a typical project finance transaction, the project company (ie the borrower) is a special purpose vehicle (SPV) set up specifically for the...

17th Jan

Practice notes

Types of projects

Project finance is a flexible financing technique (see Practice Note: Introduction to project finance).It can be used to finance almost any asset as...

17th Jan

Practice notes

Project finance—key finance documents

Documents for a typical project finance transaction can be split into three broad categories:•finance documents—the finance documents govern the debt...

17th Jan

Practice notes

PFI—UK developments and reform

Public Private Partnerships (PPPs) continue to play a significant part in UK infrastructure provision, accounting for around 12% of public sector...

Produced in partnership with Addleshaw Goddard 17th Jan

Practice notes

Introduction to public contracts procurement

Brexit impact—public procurementThe UK public procurement regime derives from EU public procurement laws, and is therefore impacted by the UK’s...

Produced in partnership with Walker Morris 16th Jan

Practice notes

Public procurement law—reform [Archived]

ARCHIVED: This Practice Note has been archived and is not maintained.It is an archived document setting out the timeline of reforms to the EU public...

16th Jan

Practice notes

Banking and finance—environmental risk

Lenders' risk exposureLenders are increasingly concerned with environmental risk in their day to day secured lending businesses. All major UK banks...

Produced in partnership with Groundsure 15th Jan

Practice notes