The South African Defense Sector - Market Opportunities and Entry Strategies, Analyses and Forecasts to 2015
- Published: April 2010
- Region: Africa, South Africa
Strong and supportive project agreement (PA) for 25-year operation About 95% of revenues coming from the State of Victoria, with no volume risk Operating risks mitigated by simple nature of services, five-year benchmarking of soft facilities management, and indexation of lifecycle costs Appropriate financing structure and security, with senior lender oversight and step-in rights before the State can terminate the PA The special-purpose-entity nature of the issuer and Plenary Conventions Pty. Ltd. (PCPL), amortizing debt, no interest-rate exposure, and appropriate reserves Exposure to unrated and financially weak builder, although this risk is mitigated by a strong cost-to-complete test, novation regime for subcontractors, simple design works, and 20% performance bonds to cover reasonable cost escalation and potential builder insolvency Constrained and...
Companies mentioned in this report are: MPC Funding Ltd.,Plenary Conventions Pty Ltd.
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Research Type: Full Analysis
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MPC Funding Ltd.,Plenary Conventions Pty Ltd.