Covenant compliance and compliance certificates

Extracted from Real Estate Project Strategic Financial Management Handbook: A Practical Guide · Appendix E Compliance Certificate
Illustrative example based on the structure of Appendix E: rolling quarterly figures (THB m). Default conditions follow the template in the handbook; edit them to match the actual agreement.

Period data (THB million)

EBITDA

Tax paid

Increase in working capital

Maintenance CAPEX

Interest paid

Principal repaid

Interest-bearing debt

Cash

Property value per valuation report

Total project cost

Equity

Current assets

Current liabilities

Agreement conditions

Minimum DSCRtimes

Maximum LTV%

Maximum LTC%

Minimum ICRtimes

Maximum Net Debt/EBITDAtimes

Minimum equityTHB million

Minimum current ratiotimes

Certificate details

Borrower name

Facility number

Reporting period

Period end date

CFO name

Covenant summary–

COMPLIANCE CERTIFICATE

Financial covenant compliance certificate

Borrower		Facility number
Reporting period		Period end date

1. Financial Covenants

Covenant	Formula	Actual	Conditions	Status

2. DSCR calculation

3. Non-Financial Covenants

No Event of Default ☐ YES ☐ NO
No material adverse change ☐ YES ☐ NO
Insurance policies remain in force ☐ YES ☐ NO
All taxes paid in full and on time ☐ YES ☐ NO
Compliance with relevant laws and permits ☐ YES ☐ NO
All reports required under the agreement have been submitted ☐ YES ☐ NO

4. Certification

I, , as Chief Financial Officer of , certify that (1) the information in this document is accurate and complete, (2) no Event of Default has occurred, except as stated, and (3) the conditions of the loan agreement have been complied with.

CFO signature / date

Authorised director signature / company seal

Results are calculations for learning purposes. The figures entered are hypothetical examples, not real project data.

How to use

Enter the period figures as defined in the loan agreement. Some agreements use trailing 12-month figures.
Edit the conditions to match the agreement. The default values are the handbook's template example.
Check the results and click "Print / Save as PDF" to use the certificate as a draft.

Formula

CFADS = EBITDA − tax − increase in working capital − maintenance CAPEX
DSCR = CFADS ÷ (interest + principal)

Prepare the covenant report at least 2 weeks before the deadline for submission to the bank. If you see signs of an approaching breach, negotiating in advance protects your credibility better than requesting a waiver after a default.