Pieridae $4.5 Billion Loan from German GovernmentIn response to questioning about the proposed $4.5 Billion USD loan from the German government to Pieridae with respect to the Goldboro project, the German State Secretary Dr. Ulrich Nubaum, stated:
"... the UFK guarantee [of the $4.5 billion loan] must be acceptable in terms of risk, ie. taking into account the creditworthiness of the borrower, the overall economic viability of the project to be financed and the political risks associated with the transaction, there must be a legitimate prospect of a recovery of the guaranteed credit without loss.The [German] Federal Government has issued a legally non-binding letter of interest on the basis of the identified feedstock subsidies. The Letter of Interest states that you want to examine a possible cover request in accordance with the regulations for a guarantee assumption. No export credit guarantees, direct investment guarantees or UFK guarantees have been granted in connection with the project."
Given that there is currently no pipeline access to Goldboro and that no arrangements have been made with either TC Energy or Gazoduc TQM with respect to constructing a pipeline to Goldboro.
In light of all of these, and other, risks, are other commentators here on Bullboard confident that Pieridae will get the $4.5 billion USD loan from the German government? If so, can you explain why you feel that. In the alternative, why do you think they will not get the loan?
Finally, wghat would the implications on the project be if the loan was not available?