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Bullet Repayment

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Bullet Repayment
1. A way to structure the repayment of a loan in which the borrower does not pay the principal over the life of the loan, but rather makes a lump sum payment at maturity. This is relatively common in mortgage loans; the borrower pays the interest each month and refinances the house in order to make the bullet repayment at the end of the mortgage term.

2. The lump sum payment in a bullet repayment structure.


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However, this requires regular payments, starting in December, 2009, culminating in a bullet repayment of pounds 13m, in January, 2012.
In the proposed structure, MTN would issue an eight-year floating-rate bond in Ugandan shillings with a bullet repayment.
Facility A has a term of five years with a quarterly repayment profile commencing on 31st March 2009 and amortising to a PS3,000,000 bullet repayment on 31stMarch 2013.
 
 
 
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