Simplified Business case „Construction development“

Financing

Czech Banks and the State Export Credit Agencies are keen to support high quality projects in Australia with very competitive conditions for Sovereign , Sub-sovereign or Commercial Borrowers.

 

Simplified Example

Sport stadium  250 mil. USD;

Loan (Buyer´s credit) granted to Australian company or sovereign/subsovereign entity by a Consortium of Czech/EU banks;

2 years drawing period, 10 years re-payment;

Czech lead contractor, but majority of works (80+% conducted by Australian firms);

Nominating Czech company as the lead contractor allows financing of the entire project (15% equity – 85% debt financing by the banks).

Directional non-binding model pricing USD:

Loan:  p.a. rate ( cca 1,5-2%)

Insurance:  Credit and Political Risk cca 0,5%

Total yearly financial costs cca 2-2,5%