Financial

Back-to-Back Commitment

Back-to-Back Commitment

An agreement in which a bank makes a loan for a new construction and an investor promises to buy that loan from the bank at a specified future date. This commitment reduces the risk the bank takes on when it makes a loan. A back-to-back commitment is identical to a take-out commitment, but applies to loans on new constructions, rather than mortgages on existing properties.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
References in periodicals archive
It follows JLR's announcement of a significant expansion of its Coventry headquarters and these back-to-back commitments by world-leading vehicle brands represent a massive endorsement of the city.
City taxi factory is hailed as fantastic
The complexity for some of these projects is significantly increased where the gas project and the power project are likely to be greenfield projects being financed on a non or limited recourse basis, and will be dependent on matching back-to-back commitments to secure their respective revenues.
LNG Chain of Gas & Power Project
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