As a copy editor with experience in SEO, it`s important to understand the significance of using specific keywords and phrases in your content. One topic that has been receiving increasing attention in recent years is the “keepwell deed agreement.”

What is a Keepwell Deed Agreement?

A Keepwell Deed Agreement is a legal document that outlines the terms of a financial guarantee between two parties. This agreement is often signed between a holding company and a subsidiary, where the holding company promises to provide financial support to the subsidiary if it ever falls into financial distress.

The agreement is known as a `keepwell` because it ensures that the subsidiary will be able to continue to operate, even if it suffers financial losses.

Why are Keepwell Deed Agreements Important?

Keepwell Deed Agreements are particularly important in the finance industry, where companies may be exposed to significant financial risks. By signing a Keepwell Deed Agreement, a company can provide reassurance to its investors and creditors that it has an external source of financial support if it is ever needed.

Furthermore, these agreements can help companies obtain financing at lower interest rates, as lenders are more likely to view them as a lower risk. This is because a Keepwell Deed Agreement effectively puts the parent company`s reputation on the line, as they must provide financial support to the subsidiary if it is ever needed.

How to Create a Keepwell Deed Agreement

Creating a Keepwell Deed Agreement requires legal expertise. Typically, both parties involved will hire lawyers to draft the agreement. The document should clearly outline the terms of the agreement, including the amount of financial support the parent company is willing to guarantee and the conditions under which this support will be provided.

It`s important to ensure that both parties understand the terms of the agreement before signing it. The subsidiary should have a clear understanding of the level of financial support that will be provided by the parent company and under what circumstances this support will be required.


A Keepwell Deed Agreement can provide valuable financial support and reassurance to companies in the finance industry. By clearly outlining the terms of the agreement, both parties can understand their obligations and expectations. If you are looking to enter into a Keepwell Deed Agreement, it`s important to seek legal advice and ensure that the agreement is tailored to the specific needs of your business.