Key terms in project finance documentation and drafting tips — repayment, prepayment and cancellation provisions

This guidance note explains the types of repayment provisions, prepayment provisions and cancellation provisions that can typically be found in a project finance development term loan facility. This explanation includes examples of how these provisions may differ to the typical repayment, prepayment and cancellation provisions typically found in a corporate term loan facility. It also discusses some of the reasons for these differences, for example, the long term nature of a development term loan facility, the fact that during the development and/or construction phase a project does not generate any revenue and the inter-relationship the repayment and prepayment provisions have with the technical monitoring of a project both during the development and construction phase and during the operating phase of the project.

See Key terms in project finance documentation and drafting tips — repayment, prepayment and cancellation provisions.