Project Finance

As a preliminary matter, Uzbekistan commercial finance law is in a stage of development and is therefore subject to frequent amendment, varying interpretation and inconsistent implementation. Furthermore, certain terms and concepts relevant to the Project Finance are not contemplated under Uzbekistan law, e.g. the Security Agent, the Inter-Creditor Agent  or Pledge of Accounts and Assignment used as a security interest.

According to the Uzbek Law “On Foreign Economic Activity”, legal entities registered in Uzbekistan have the right to conduct the foreign economic activity with participation of foreign legal entities and in particular in sphere of banking and financing. The Uzbek Law “On Foreign Borrowing” provides that the Uzbek residents have the right to attract monetary funds in form of credits, loans and other from non-residents.

According to Uzbekistan Law “On Foreign Currency”, the attraction of monetary funds in form of credits, loans and other from non-residents is considered as currency transactions involving movement of capital, which are subject to restrictions, approvals and permissions of the Central Bank of Uzbekistan.

Our services in the sphere of Project Finance

• advising on Uzbekistan law in the areas of required authorizations, consents, permitting framework, regulation, investment, investment protection and other key aspects to Project Finance;
• drafting and finalization of the Terms Sheet to be entered into by financiers from an Uzbekistan law point of view.
• assistance with drafting of the core finance documents to be prepared in frame of to Project Finance, including inter-creditor arrangements, common terms and/or facility agreements, account bank arrangements, security documents, direct agreements, sponsor completion support, shareholder loan subordination agreements and other customary documentation for project financing;
• assisting in the preparation, collection, review and confirmation of the conditions precedent (CP) to financial close and conditions subsequent (CS);
• providing legal opinions to the client as are customarily required for project financing;
• providing any other support and advice to the client on the legal aspects of the transaction to ensure the successful and timely financial close for project financing.