The financing put in place at the time of the concession award in January 2005 was soon refinanced in August 2005; these two financing structures are summarized below.
Source of funding | January 2005 | August 2005 |
Concessionaire equity | US$1.00 billion (45.5%) | US$0.60 billion (28%) |
Concessionaire raised subordinated debt | - | US$0.15 billion (7%) |
Concessionaire raised senior debt | US$1.19 billion (54.5%) | US$1.40 billion (65%) |
TOTAL | US$2.19 billion | US$2.15 billion (100%) |
Note: Amounts are approximate. | ||
The original senior loan was a nine-year loan underwritten by a group of European banks. When the SCC refinanced, US$1.4 billion of AAA-rated bonds were issued and US$150 million of subordinated debt was arranged. This refinancing enabled the SCC's shareholders to recover approximately US$400 million of their original investment.