Long-term Project-tied Loans
The following framework condititons apply for OeEB's long-term and project-tied loans
a) Type of facility
Loans granted by OeEB are by definition based upon projects, rather than being linked to a specific exporter/investor (“tied to the project, untied to the sourcing”).
b) Currency/Tenor/Interest rate
Facilities granted may be denominated in Euro or USD, with tenors, i.e. loan amortisation, ranging from 3 to 15 years. Grace periods that are aligned to the specific project requirements, in particular to its cash-flow projections, may be provided during the length of the tenor.
The interest rates offered are close to the going market rates and are adjusted by a reasonable risk margin. Furthermore, interest rate subsidies are not granted, in order to avoid competition with the commercial banking sector.
c) Collaterals
Collaterals must be adequate to the project in question. Its spectrum range from pure corporate risk provided the satisfactory creditworthiness of the partner, the so-called parent company guarantees, or cash-flow based projects as well as standard instruments such as escrow accounts, mortgage-backed securitisation, pledging of stakes in companies and investments, and buy-back agreements on the part of the supplier.
In individual cases, government guarantees may be accepted as long as the economic viability of the project is secured without relying on direct flows from a country's budget.
d) Fees
In accordance with OeEB's degree of involvement in a project, it may charge fees for inspection, management, intermediation, arranging and the like.