Undertakings (covenants)

This guidance note addresses:

• • what undertakings, or covenants, are in the context of finance documents;
• • the usual types of undertaking found in facility documentation recording a corporate loan to an investment grade borrower (information undertakings, financial covenants and general undertakings); and
• • the common negotiating points and concerns for both the lender and borrower.

Where appropriate, this guidance note highlights relevant provisions in the Asia Pacific Loan Market Association (APLMA) Australian secured term and multicurrency revolving syndicated facility agreement.

See Undertakings (covenants).