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Co Financing Agreement for Philippines

Co Financing Agreement Template for Philippines

A Co-Financing Agreement under Philippine law is a comprehensive legal document that establishes the terms and conditions for multiple financial institutions or investors to jointly provide financing for a specific project or venture. The agreement, governed by Philippine law and regulations including the Civil Code and banking regulations, outlines the rights and obligations of all parties, disbursement mechanisms, repayment terms, and security arrangements. It includes specific provisions for coordination between co-financiers, risk allocation, and compliance with local financial regulations and requirements set by the Bangko Sentral ng Pilipinas (Central Bank of Philippines).

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Co Financing Agreement

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What is a Co Financing Agreement?

A Co-Financing Agreement is essential when multiple financial institutions or investors collaborate to fund large-scale projects that require substantial capital investment. This document is particularly relevant in the Philippine context where major infrastructure, development, or commercial projects often require pooled resources from various financial institutions. The agreement must comply with Philippine banking regulations, securities laws, and the Civil Code, while potentially also considering international financing standards if foreign lenders are involved. The document details the financing structure, participation ratios, disbursement procedures, security sharing, and inter-creditor arrangements. It's commonly used for projects where risk sharing is desired or when a single institution cannot or prefers not to provide the entire financing amount.

What sections should be included in a Co Financing Agreement?

1. Parties: Identification of all co-financiers, borrower(s), and any other relevant parties to the agreement

2. Background: Context of the financing arrangement, purpose of the funds, and overview of the project or venture being financed

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

4. Purpose and Facility Amount: Details of the total financing amount and breakdown of each co-financier's contribution

5. Conditions Precedent: Standard conditions that must be satisfied before the agreement becomes effective

6. Disbursement Procedures: Mechanisms and procedures for disbursement of funds, including timing and coordination between co-financiers

7. Interest and Fees: Interest rates, calculation methods, and any applicable fees or charges

8. Repayment Terms: Schedule and mechanics of repayment, including allocation between co-financiers

9. Representations and Warranties: Standard representations and warranties from all parties

10. Covenants: Positive and negative covenants applicable to the borrower and other relevant parties

11. Events of Default: Circumstances constituting default and consequences thereof

12. Rights and Obligations of Co-Financiers: Specific rights, responsibilities, and relationships between co-financiers

13. Administrative Provisions: Procedures for communications, amendments, and administration of the agreement

14. Governing Law and Jurisdiction: Specification of Philippine law as governing law and jurisdiction for disputes

15. Miscellaneous: Standard boilerplate provisions including notices, amendments, and severability

What sections are optional to include in a Co Financing Agreement?

1. Security Arrangements: Required when the financing is secured by collateral or guarantees

2. Special Conditions Precedent: Used when project-specific conditions must be met before disbursement

3. Inter-Creditor Provisions: Required when there are complex relationships between multiple financiers requiring detailed coordination

4. Step-In Rights: Included when co-financiers require the right to take control under specific circumstances

5. Currency Provisions: Required when financing involves multiple currencies

6. Tax Provisions: Detailed tax arrangements when complex tax implications exist

7. Assignment and Transfer: Detailed provisions for when transfer of financing interests is anticipated

8. Environmental and Social Requirements: Required for projects with significant environmental or social impacts

What schedules should be included in a Co Financing Agreement?

1. Schedule 1 - Financing Details: Detailed breakdown of financing amounts, contributions, and payment schedules

2. Schedule 2 - Conditions Precedent Documents: List of all required documents and conditions to be satisfied

3. Schedule 3 - Disbursement Schedule: Detailed timeline and procedures for fund disbursement

4. Schedule 4 - Form of Disbursement Request: Standard form for requesting disbursements

5. Schedule 5 - Security Documents: Details of any security arrangements and related documentation

6. Schedule 6 - Project Description: Detailed description of the project or venture being financed

7. Schedule 7 - Financial Covenants: Detailed financial ratios and requirements

8. Appendix A - Contact Details: Contact information for all parties and authorized representatives

9. Appendix B - Standard Forms: Collection of standard forms for notices, certificates, and other regular communications

Authors

Alex Denne

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

Jurisdiction

Philippines

Publisher

Ƶ

Document Type

Finance Agreement

Cost

Free to use
Relevant legal definitions














































































Clauses








































Relevant Industries

Infrastructure Development

Real Estate

Energy and Power

Transportation

Telecommunications

Manufacturing

Mining and Natural Resources

Agriculture and Agribusiness

Healthcare

Education

Public-Private Partnerships

Renewable Energy

Industrial Development

Urban Development

Relevant Teams

Legal

Finance

Treasury

Risk Management

Compliance

Corporate Finance

Project Finance

Credit

Investment Banking

Business Development

Operations

Portfolio Management

Relevant Roles

Chief Financial Officer

Finance Director

Legal Counsel

Project Finance Manager

Investment Officer

Credit Risk Manager

Corporate Finance Manager

Treasury Manager

Compliance Officer

Project Director

Senior Banker

Relationship Manager

Investment Analyst

Financial Controller

Legal Director

Managing Director

Risk Officer

Portfolio 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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