Document background
The Bilateral Credit Agreement is a fundamental financing document used in Danish banking and corporate finance transactions when one party (the lender) agrees to provide credit facilities to another party (the borrower). This agreement type is essential for documenting commercial lending arrangements under Danish law, whether for general corporate purposes, specific projects, or asset acquisition. The document incorporates mandatory provisions required by Danish financial regulations, including the Danish Financial Business Act and Credit Agreements Act, while also ensuring compliance with EU banking regulations where applicable. It contains detailed provisions regarding facility terms, drawdown mechanics, repayment obligations, security arrangements (if any), and standard banking covenants. The agreement is typically customized based on the specific transaction requirements, borrower's creditworthiness, and the nature of any security provided.
