Document background
The Project Finance Agreement is a fundamental document used in financing large-scale projects where the financing is primarily secured by the project's assets and cash flows rather than the sponsors' balance sheets. This agreement, governed by Austrian law, serves as the cornerstone document that establishes the relationship between the lenders and the project company, detailing all aspects of the financing arrangement including facility terms, security structure, conditions precedent, and ongoing project requirements. It is particularly vital for capital-intensive projects where risk allocation and detailed financial structuring are essential. The document must comply with Austrian banking regulations, securities laws, and EU financial directives, while incorporating international project finance best practices. The Project Finance Agreement is typically used when implementing infrastructure, energy, or other large-scale projects that require substantial capital investment and involve multiple stakeholders.
