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Project Loan Agreement Template for Nigeria

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Key Requirements PROMPT example:

Project Loan Agreement

"I need a Project Loan Agreement under Nigerian law for a renewable energy project in Lagos, with a consortium of three international banks lending $50 million to a local project company, including specific provisions for environmental compliance and offshore security arrangements."

Document background
The Project Loan Agreement is a specialized financing document used when a lender or consortium of lenders provides funding for a specific project in Nigeria. It is particularly relevant for large-scale infrastructure, energy, or industrial projects where the loan is primarily secured by the project's assets and cash flows. The agreement must comply with Nigerian banking regulations, including the Banks and Other Financial Institutions Act (BOFIA) 2020 and Central Bank of Nigeria guidelines. It typically includes detailed provisions for project implementation, monitoring, and completion milestones, as well as specific security arrangements and covenant packages tailored to the Nigerian legal context. The document is essential for project finance transactions where lenders require comprehensive control and monitoring rights over the project's development and operation.
Suggested Sections

1. Parties: Identification of the Lender(s) and Borrower(s) with their full legal names and addresses

2. Background: Recitals explaining the context of the loan and project purpose

3. Definitions and Interpretation: Comprehensive definitions of terms used in the agreement and rules of interpretation

4. The Facility: Details of the loan amount, purpose, and availability

5. Conditions Precedent: Conditions that must be satisfied before loan drawdown

6. Drawdown: Procedures and requirements for drawing down the loan

7. Interest: Interest rate, calculation method, and payment terms

8. Repayment: Repayment schedule, prepayment provisions, and payment mechanics

9. Security: Details of security/collateral arrangements

10. Representations and Warranties: Statements of fact and assurances from the Borrower

11. Covenants: Positive and negative obligations of the Borrower

12. Events of Default: Circumstances constituting default and consequences

13. Changes to Parties: Assignment and transfer provisions

14. Administration: Administrative provisions including notices and calculations

15. Governing Law and Enforcement: Choice of law and jurisdiction provisions

Optional Sections

1. Multiple Lenders Provisions: Required when there are multiple lenders, including voting rights and facility agent provisions

2. Project Monitoring: Include when the lender requires specific project monitoring rights

3. Environmental Compliance: Required when the project has significant environmental aspects

4. Insurance: Detailed insurance requirements when specific insurance coverage is crucial

5. Step-in Rights: Include when lenders require the right to take control of the project in certain circumstances

6. Intercreditor Provisions: Required when there are multiple creditors with different priorities

7. Currency Provisions: Include detailed currency provisions when dealing with foreign currency loans

8. Tax Gross-up: Include when tax implications need specific attention

Suggested Schedules

1. Conditions Precedent: Detailed list of required documents and conditions

2. Form of Drawdown Request: Template for drawdown requests

3. Repayment Schedule: Detailed amortization schedule

4. Project Details: Detailed description of the project and its milestones

5. Security Documents: Forms of security documents and perfection requirements

6. Financial Covenants: Detailed financial ratios and calculations

7. Form of Compliance Certificate: Template for periodic compliance certification

8. Permitted Security: List of security interests permitted under the agreement

9. Form of Transfer Certificate: Template for transfer of loan participations

Authors

Alex Denne

Head of Growth (Open Source Law) @ ¶¶Òõ¶ÌÊÓÆµ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions

















































































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Relevant Industries

Infrastructure

Energy and Power

Oil and Gas

Mining

Real Estate Development

Manufacturing

Telecommunications

Transportation

Agriculture

Healthcare

Education

Water and Sanitation

Industrial Development

Renewable Energy

Relevant Teams

Legal

Finance

Treasury

Project Management

Risk Management

Compliance

Credit

Corporate Finance

Investment

Operations

Business Development

Relevant Roles

Chief Financial Officer

Finance Director

Project Finance Manager

Legal Counsel

Corporate Lawyer

Project Manager

Risk Manager

Treasury Manager

Investment Officer

Credit Risk Officer

Compliance Officer

Project Development Manager

Contract Administrator

Financial Controller

Banking Relationship Manager

Industries










Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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