International Power has a sound financial position which, together with the strong committed financial support of GDF SUEZ provides the Group with a robust capital structure to fund growth. International Power plc has consistently proved its financing capabilities through the execution of numerous greenfield and acquisition financings, together with re-financings of existing assets.
The GDF SUEZ Group has provided a package of loans and facilities to International Power in excess of £3.1 billion at investment grade rates, which among other things will go towards repaying more expensive debt at merchant assets which tend to have a shorter tenor and also towards credit support for trading. The key components of the package are set out below. These facilities are initially in place to 31 December 2013 and then have a one year rolling renewal (with fifteen months’ notice).
GDF SUEZ Funding Package:
|Loans and Guarantees
||Long-term funding up to annual budgeted financing needs for International Power at investment grade cost
||Refinancing of existing International Power project finance and subordinated facilities after closing at investment grade cost
||Refinancing of existing International Power project finance facilities at maturity at investment grade cost
||Trading credit and project support
||Short-term working capital
||Trading credit cash at investment grade cost
In addition, our business is strongly cash generative and we maintain a prudent level of headroom at the corporate level and have access to loan facilities and credit lines. These facilities can be applied to various aspects of our business should the need arise; for example, to support growth. The actual choice of funding instrument(s) depends on the size and nature of the transaction and market conditions at that time.