Key terms in project finance documentation and drafting tips — representations and warranties

Typically, representations and warranties are given on the date the facility agreement is signed by the borrower and any security provider.

Legal representations deal with the legal status of the borrower, any guarantors and any security providers, the ability to enter into the finance documents and compliance with the relevant entity’s own constitution and other laws.

Commercial representations tend to relate to the assets of the borrower and its ability to carry on its business. They also confirm that the business and assets are not at risk due to third party claims or failure to comply with laws or regulations.

This guidance note outlines the key matters to consider when drafting representations in a project finance transaction.

See Key terms in project finance documentation and drafting tips — representations and warranties.