In a statement, the ministry said the aim of this loan is repay other loans, and it will save Jordan around $50 million of annual debt service
if the government had resorted to Eurobonds, with a cost of 8-9 percent.
Sims exclusively underwrote USD 101,145,000 of fixed rate bonds, priced on March 21, 2019, achieving USD 500,000+ in savings on annual debt service
from the feasibility study assumptions.
HEALTHY FINANCES: Historical rate increases and a decline in fixed annual debt service
costs have led to elevated debt service coverage (DSC) and robust cash levels.
The remaining term of the acquired debt is approximately five years and the annual debt service
Following the transaction the group's annual debt service
costs are expected to reduce from PS40 million to approximately PS33 million.
Further, the University's annual debt service
is modest at 2.9 percent of unrestricted revenues, and its net position grew by 16.6 percent.
Although annual debt service
coverage remains strong for both first- and second-lien sales tax-secured debt, particularly after a recent legislated expansion of the sales tax base that has raised annual coverage in the short-term, growth in sales tax is still needed to maintain high annual debt service
coverage for first-lien bonds, and to cover combined first- and second-lien maximum annual debt service
(MADS) occurring in 2041.
"We created significant value to the shareholders by reducing the annual debt service
to the co-op; in turn lowering the monthly maintenance of each apartment."
Average annual debt service
is total debt service divided by the number of years for the loan.
Part of the refurbishment costs will be debt financed and the annual debt service
and issuance costs will be recovered through terminal rates and charges.