Ann: Abra Project Debt Finalised, page-41

Further to the analysis of alternative funding arrangements I've done a little investigation over the weekend. I'm sure there are more examples, but DCN is one which stood out, requiring a similar level of debt-funding arrangement from Dec-2016.

Project Debt facility raised A$150M ($140 Project + $10M cost over-run) via three tier-one banks. The key terms were what I was most interested in for our analysis comparison. From this facility I can see;

1) No commitment to fully draw on funds, and no financial penalties.
2) Loan term 5 years.
3) Low-Interest Rates (DCN Annual Financial Statement 2019 Weighted Annual Effective Rate = 4.6%)
4) No Mandatory Hedging Requirement
5) Early Repayment Flexibility - No penalty or restriction for early repayment.

However, the difference lies in a need for;@Kalenn might have some additional info on this.

1) Cash Reserving?
2) Corporate Guarantee from Dacian during construction, commissioning and ramp-up.


The summary of which is: If AM is able to secure a new facility, the example suggests the 5% interest is the more accurate figure totalling saving of circa $48M over LOM.