Finance Deals & Syndicated Lending · glossary
The certificate that goes with each set of accounts, signed by the chief financial officer. It sets out the financial covenant calculations with the working, so the lenders can check both ratios twice a year. Definition: Compliance Certificate · Chapter 9
Explained in Chapter 9, Undertakings and Financial Covenants, of Finance Deals & Syndicated Lending.
Also explained in Derivatives.
Each set of accounts must come with a Compliance Certificate (clause 16.2). The definition requires it to be “signed by the chief financial officer” and to set out the covenant calculations “in reasonable detail”. So a named officer, not the auditors, stands behind the arithmetic. The certificate must show its working: the debt, the earnings and the ratios.Read Chapter 9, Undertakings and Financial Covenants →
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a certificate signed by the chief financial officer of the Company setting out, in reasonable detail, computations of the financial covenants in clause 17;Read the definition in the document →
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