Skip to content
Erudite AfricaCenter of Excellence
← Syndicated Loans and Cross-Border Project Finance

The facility agreement in depth

Module 03 / 5 · 70 min

Read, negotiate and test the clauses of an LMA-style facility agreement that decide when lenders fund, when they can act and who decides.

In this module you will learn to

  • Map a term sheet to the structure of an LMA-style facility agreement
  • Negotiate conditions precedent, representations and financial covenants that fit an Ethiopian project
  • Test covenant compliance and identify events of default and their consequences
  • Apply majority and all-lender voting rules and the transfer clause to real decisions

Built on

  • Erudite Africa course specification 1.o: Syndicated Loans and Cross-Border Project Finance, Levels 1 and 2 (October 2026)
  • Erudite Africa Training Module: Ethiopian Context, programme overview and regulatory register (October 2026)
  • NBE directives as listed in the lessons: SBB/87/2024, SBB/88/2024, SBB/90/2024, SBB/95/2025, SBB/96/2025, NBE/INT/13/2026, FXD/01/2024 and FXD/04/2026
  • A commercial bank's Revised Credit Procedure Manual (August 2025), unnamed
  • Banking Business Proclamation No. 1360/2025; Public Private Partnership Proclamation No. 1076/2018 as amended; Ministry of Finance Public Sector Debt Statistical Bulletin No. 56
  • Loan Market Association documentation conventions, IFC Performance Standards, Equator Principles and MIGA cover types (general market practice)

Examples and companies are fictional. Bank practices are shown as typical Ethiopian practice, not as any one bank's policy. Always apply your own institution's approved policy and the current NBE directives.