Document background
The Project Loan Agreement is a crucial document used in project finance transactions where specific projects require substantial financing under Danish law. It serves as the primary agreement between lenders and borrowers, typically involving complex infrastructure, energy, or development projects. The agreement combines standard loan provisions with project-specific requirements, including detailed conditions precedent, drawdown mechanisms, project milestones, and monitoring requirements. It must comply with Danish financial regulations while following international project finance practices. The document is particularly relevant for projects where the loan repayment primarily depends on the project's cash flows, requiring careful structuring of security packages and project covenants. This type of agreement is essential when financing large-scale projects in Denmark or Danish-governed international projects, where detailed risk allocation and project supervision are critical.
