Document background
The Facility Agreement is a fundamental document in corporate financing, used when a lender (typically a bank or financial institution) provides credit facilities to a borrower. Under Danish law, these agreements must comply with local financial regulations, the Danish Contracts Act, and relevant EU directives. The document is essential for any significant corporate borrowing, project financing, or refinancing transaction in Denmark. It contains detailed provisions covering facility terms, security arrangements, representations, covenants, and events of default. The Facility Agreement serves as the primary document governing the rights and obligations of all parties involved in the lending arrangement, incorporating specific Danish legal requirements while following international banking practices where applicable.
