Brussels, 15/02/2010 (Agence Europe) - On Friday 12 February, the European Investment Bank (EIB) announced that it was to lend up to €65 million to XDC, Europe's leading digital cinema service company, as part of the financing structured by BNP Paribas Fortis to contribute to its digitisation roll-out plans in Europe. This will also strengthen XDC's research and development activities to further improve its digital cinema technology.
The loan facility granted by BNP Paribas Fortis, KBC, CBC and the EIB will finance digital cinema equipment to be deployed in European cinemas as part of the “Virtual Print Fee” co-financing scheme. This scheme, based on cost sharing between exhibitors and distributors, has been signed by XDC with the 6 major Studios to convert up to 8,000 screens to digital over the next 4 years.
EIB participation in the first tranche of the loan facility amounts to €16 million. KBC Bank and CBC Bank will also participate in this facility to the tune of €10 million. The BNP Paribas Fortis Group, which was mandated last year to structure, arrange and underwrite this 2 x €50 million project finance loan facility, will provide the remainder - €24 million - of the first tranche. A substantial portion of the loan will be provided by ONDD, the Belgian Export Credit Agency. Ahead of these senior debt arrangements, XDC entered into a financing agreement with Barco, one of its preferred digital projector manufacturer partners. Barco will participate through a specific and tailor-made vendor financing programme. (O.L./transl.rt)