ARROWS has prepared a contractual framework for the investor, the bank, and the SPV
ARROWS Law Firm provided legal advice to a client on structuring the relationship between the investor, the financing bank, and the project SPV (Special Purpose Vehicle). The goal was to create a structure that would enable secure project financing, protect the investor’s investment, and simultaneously meet the bank’s requirements for collateral and cash flow control.
The client approached ARROWS during the preparation phase of an investment project that was to be implemented through a separate SPV and financed by a combination of bank loans and investor capital. The key objective was to properly structure the roles of all parties so that the bank would obtain the necessary level of control and security, the investor’s investment would be contractually protected, and the SPV could implement the project without internal obstacles.
ARROWS designed the structure and subsequently prepared and negotiated the key contractual documentation, particularly the terms governing relations among the SPV’s shareholders, decision-making rules, conditions for drawing down investor funds, the mechanism for return on investment, restrictions on the disposal of the SPV’s assets, and alignment with the bank loan documentation. The result was an agreement between the investor, the bank, and the SPV, the fulfillment of conditions for drawing down the loan, and the creation of a transparent structure that enabled the client to safely commence project implementation.
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