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Sponsor Support Agreement
"I need a Sponsor Support Agreement under Indonesian law for a renewable energy project in East Kalimantan, where three international sponsors will provide both equity support and technical assistance to a local project company, with financial close targeted for March 2025."
1. Parties: Identification of the sponsor(s), project company, and other relevant parties
2. Background: Context of the project and relationship between parties
3. Definitions and Interpretation: Key terms, construction rules, and interpretation principles
4. Sponsor Support Obligations: Core obligations including equity contributions, subordinated debt, and other support mechanisms
5. Conditions Precedent: Prerequisites for the agreement's effectiveness
6. Support Implementation: Procedures and mechanics for providing sponsor support
7. Payment Mechanics: Process and requirements for financial support payments
8. Representations and Warranties: Statements of fact and assurances from the sponsor
9. Covenants: Ongoing obligations and restrictions on the sponsor
10. Events of Default: Circumstances constituting breach and their consequences
11. Duration and Termination: Term of the agreement and termination provisions
12. Dispute Resolution: Procedures for resolving disputes under Indonesian law
13. Miscellaneous: Standard boilerplate provisions including notices, amendments, and governing law
1. Currency Provisions: Required when support involves multiple currencies or foreign exchange considerations
2. Tax Provisions: Detailed tax arrangements when sponsor support has significant tax implications
3. Step-In Rights: Included when lenders require direct rights to enforce sponsor obligations
4. Security Provisions: When sponsor support is secured by specific assets or rights
5. Regulatory Compliance: Detailed compliance provisions when project involves regulated sectors
6. Insurance Requirements: When sponsor must maintain specific insurance coverage
7. Local Content Requirements: When project must comply with Indonesian local content regulations
1. Schedule 1 - Support Amount and Timing: Detailed breakdown of support commitments and timing
2. Schedule 2 - Form of Support Letter: Template for sponsor support letters or confirmations
3. Schedule 3 - Payment Instructions: Banking and payment details for financial support
4. Schedule 4 - Project Details: Key information about the underlying project
5. Schedule 5 - Conditions Precedent Documents: List of required documentation and conditions
6. Appendix A - Form of Sponsor Certificate: Template for periodic sponsor certifications
7. Appendix B - Notice Details: Contact information and notice requirements for all parties
Authors
Infrastructure Development
Energy and Power
Mining and Resources
Oil and Gas
Telecommunications
Transportation
Industrial Development
Renewable Energy
Real Estate Development
Manufacturing
Legal
Finance
Project Development
Risk Management
Treasury
Compliance
Corporate Development
Commercial
Investment
Project Management
Project Finance Manager
Legal Counsel
Chief Financial Officer
Project Director
Investment Manager
Corporate Finance Director
Risk Manager
Compliance Officer
Treasury Manager
Commercial Director
Project Development Manager
Senior Contract Administrator
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