fmg vs arh, page-8

This project will basicly be debt and equity funded Jiang. ARH are giving away 50% equity in the project to Shougang in return for a $2.1 billion intrist free loan which in real affect saves $2 billion intrist over the life of the project which in turn effectively saves arh $1 billion in intrist which you can write off as the cost of 50% equity given to Shougang. The effective debt liabilty for arh is therefore $1.05 billion intrist free repayable over 15 years. Now if that is not a good deal, where you get a project up and running without any inital capital outlay because remember Shougang have already injected $56 million into arh bank account and option to inject a further $42 million into arh bank account. This is a deal Twiggy or any other iron hopefull could only ever dream about.