Document background
The Project Finance Agreement is a crucial document used in the UAE for structuring complex project financing transactions, typically for large-scale infrastructure, energy, or industrial developments. This agreement serves as the primary financing document that establishes the terms and conditions under which lenders provide funding to the project company. It must comply with UAE legal requirements, including both civil law principles and, where applicable, Sharia law considerations. The document encompasses detailed provisions for facility terms, security arrangements, drawdown mechanisms, project undertakings, and risk allocation. It is particularly adapted to the UAE market context, addressing local security creation and perfection requirements, foreign ownership restrictions, and regulatory compliance matters. The agreement is essential for projects requiring significant capital investment where the financing is primarily based on project cash flows rather than sponsor balance sheets.
