Different debt/equity ratios and financing terms are possible. The financial assumptions are shown below:
Financing Conditions
| • Debt | : | 60% of cost including capitalized interest |
| • Equity | : | 40% of cost |
| • Repayment Period | : | Seven years, one year grace period on principal. Interest is capitalized in the first year |
| • Interest Rate | : | 9% per Annum |
The debt service schedule is shown in Table 3-7. Loan proceeds are obtained at the beginning of the year and interest payments are due at the end of the year.
Table 3-7 Debt Service Schedule
| Annual debt service payments for LGU Shopping Center and Public Market (PhP million) | ||||
| Year | Principal repayment | Interest payment | Total debt service | Principal outstanding |
| 2013 | - | 21,736,300 | 21,736,300 | 241,514,448 |
| 2014 | 34,502,064 | 19,407,411 | 53,909,475 | 207,012,384 |
| 2015 | 34,502,064 | 16,302,225 | 50,804,289 | 172,510,320 |
| 2016 | 34,502,064 | 13,197,039 | 47,699,103 | 138,008,256 |
| 2017 | 34,502,064 | 10,091,854 | 44,593,918 | 103,506,192 |
| 2018 | 34,502,064 | 6,986,668 | 41,488,732 | 69,004,128 |
| 2019 | 34,502,064 | 3,881,482 | 38,383,546 | 34,502,064 |
| 2020 | 34,502,064 | 776,296 | 35,278,360 | - |
Table 3-8 Income Statement, Cash Flow and Balance Sheet
[Access: Table 3-8 Income Statement, Cash Flow and Balance Sheet - PDF]