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Please answer all the parts of the question! I will give positive feedback. Thanks for the help! 1 din I. Finance 2018/21 can X, a
Please answer all the parts of the question! I will give positive feedback. Thanks for the help!
1 din I. Finance 2018/21 can X, a well known American based corporation raised USD 800 million through a syndicated loan, arranged by the lead bank HSBC UK, one of the largest banking d financial servies organisations in the world. The proceeds of the loan would finanu a joint venture with an Australian company, y in a titanium mining project. The Australian company has been in the mining industry for decades, has a good woridwide reputation and a sound financial track record. It is usted on the Australian Securities Exchange in Sydney. The main terms of the joint venture are that te will provide the financial support and y the technological knowhows human resources, local expertise of the terrain and knowledge of local legislation. The project will earn its profits at the end of the 5th Details of the syndicated to an are: Maturity -5 years spread = 150 basis points. LIBOR (currently 1l) Syndication fees 205 (i) Calculate the loan proceeds received by a from the syndicated loan and the interest payable perannum. (1) Discuss the possible reasons why X has opted for a syndicated loan in London Father than in America, and why the syndicated loan was preferred to other methods of any debe funding. Con mark] (ii) Explain 4 risks that might be associated with this joint venture. year. Interest rateStep by Step Solution
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