Concessionality will be determined on a case-by-case basis, and be tailored to the specific needs of the project. Concessions will only be provided to the extent required to ensure the project’s viability.
Examples of the types of concessionality the NAIF may offer include:
- longer loan tenor than offered by Commercial Financiers, not exceeding the longest term of Commonwealth borrowings
- lower interest rates than offered by Commercial Financiers, which must not be lower than the rate at which the Commonwealth borrows at
- extended periods of capitalisation of interest beyond construction completion
- deferral of loan repayments or other types of tailored loan repayment schedules
- lower or different fee structures than those offered by Commercial Financiers
- ranking lower than Commercial Financiers for cash flow purposes
Further information can be found in the Investment Mandate.