RE: From the Seeking Alpha Article..."....but for the initial 85%, or the $632.4 million loan, I'd like to see a 6%, or lower loan thru the World Bank, or by a group of International Banks as a starter."
How dose a 3% interest rate and a 5 year grace period sound? In regards to any debt financing to be undertaken, China is apt to be the source because China eventually is going to be Chandgana's future market.
PCY had to be conservative with the interest rate disclosed in the BFS.
| Monday, 26 December 2011 08:39 |
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The Serbian Government approved on Dec. 22 a draft contact on a Chinese loan worth USD334 for the revitalization of the Kostolac B Thermal Power Plant, Milivoje Mihajlovic, the head of the government media cooperation office, told BETA.
Dragan Jovanovic, the director of the company Kostolac Thermal Power Plant and Pits, said that this was the last condition for signing the contract on the loan with the Export-Import Bank of China, which is expected by the end of the year.
The loan will be used to implement the first part of the arrangement with the Chinese company CMEC as part of which the revitalization of blocks B1 and B2, the construction of a plant for removing sulfur gases at the Drmno Thermal Power Plant and the construction of a railway platform and dock are planned.
According to earlier information, the Export-Import Bank of China will approve the loan with an annual interest rate of three percent, a grace period of five years and a repayment period of 15 years. The start of drawing money from the loan is expected after the ratification of the loan contract in the Serbian Parliament.
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