My reading of it is DML is still cashflow negative, The banks have extended them the loans to the extent of the draw down required which is then offset but the gain on the hedge book. This way the the banks exposure is not increased.
So the banks lend to the amount of the gain on the hedge book.
I think this is correct maths but would be happy to be told differently.
Cheers
Ann: Financing Update , page-5
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