GLOSSARY

Lender's Direct Agreement

Lender's direct agreement is the agreement between parties to a concession or BOT agreement (government or port authority and special purpose vehicle [SPV] or terminal operator) and the lenders (usually banks or a consortium of banks) setting out the rights and obligations of the lenders in relation to the government or port authority regarding the facilitation of the financing of a port project.

What is Lender's Direct Agreement ?

The lender's direct agreement is used in the event of a proposed termination of the concession agreement to induce the lenders to provide the debt to the SPV or operator under the financing documents. These rights and obligations usually comprise assignment rights with respect to the concession and the site lease agreement, priority rights with respect to of repayment of the debt, and step-in rights in case of termination as a result of breach of contract by the SPV or operator.

Learn More

Related Articles:

Related Terms: