CONFIDENTIAL #2
機密
ANNEX D TO XCC(75)55
Proposed Financial Strategy for
the Corporation
Introduction
This annex draws upon various reports prepared by the
Provisional Authority's financial advisers. It summarises the
projected cash flow situation of the Mass Transit Railway Corporation
and then goes on to suggest what the general strategy for raising
the funds required to finance construction and equipment of the
system should be.
Summary of Conclusions
2.
On the most recent basic assumptions concerning costs,
revenue and terms of finance for the Modified Initial System, the
cash flow picture is similar to that in January. Interim investigation
and action permit considerably greater confidence in these present
assumptions.
3.
Sources of funds sufficient to cover all costs during the
construction period appear likely to be available; no firm commitment
can now be obtained for the re-financing of maturing debt during the
early 1980s and this question will require careful attention later
on (although the lead bank for a proposed U.S. dollar facility has
expressed a general willingness, in principle, to roll the facility
over).
4.
Longer term sources of funds should be actively sought in
offshore markets; they may not be critical to the initial financing
of the Railway but will minimise re-finance problems in the early 1980s.
G.F. 323
CONFIDENTIAL
機密