These standard clauses provide drafting for financial covenants (also called cover ratios) and related definitions for a typical project finance facility agreement, either syndicated or bilateral. The covenant package includes a debt-to-equity (DTE) covenant, a historic debt service cover ratio (DSCR) and a loan life coverage ratio (LLCR). Additionally, there is an optional prospective (forward-looking) DSCR. These standard clauses also include an equity cure provision.

These standard clauses include integrated drafting notes that explain the commercial reasons for the covenants and related definitions and highlight some common negotiating and practical issues.