Oireachtas Joint and Select Committees

Thursday, 27 January 2022

Joint Oireachtas Committee on Transport, Tourism and Sport

National Broadband Plan Update: National Broadband Ireland

Mr. Barry Kelly:

The return on overall shareholder funds, whether invested by way of equity or shareholder loans, forms part of the overall return to the investors which was agreed up front in the context of the financial model, to which Mr. Hendrick referred, with the Minister. Those returns, whether by way of equity or shareholder loans, are subject to the same sort of protections that are in the contract in terms of claw-backs and timing restrictions. Although the shareholder loan will have a coupon attached to it of 12% and we have to accrue that from an accounting perspective in our year-end accounts, nothing can be paid until the project is successful, sufficient cash flow is generated and there is sufficient return made to the investors.

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