Document background
A Project Finance Loan Agreement is a specialized financing document used when lenders provide funding based primarily on a project's cash flows rather than the sponsor's balance sheet. This document, governed by Hong Kong law, establishes the comprehensive framework for the financing relationship, including detailed conditions precedent, extensive covenants related to project construction and operation, security arrangements, and monitoring requirements. It is particularly suited for large-scale infrastructure, energy, and industrial projects where risk allocation and project oversight are crucial. The agreement must comply with Hong Kong banking regulations and security laws while incorporating international project finance best practices. It typically involves multiple parties including lenders, sponsors, contractors, and various advisors, and requires careful consideration of project-specific risks and mitigation measures.
