The loan, consisting of two tranches of EUR 50 million, has been structured by BNP Paribas Fortis with the participation of the European Investment Bank (EIB) and KBC Bank. XDC has fulfilled all the conditions required in order to proceed with the first drawdown of this loan facility on 21 May 2010.
The first tranche will be used initially for the rollout of digital systems at Belgian exhibitors. It will then be used for several digital installations, already planned for the next few weeks, in other countries such as Germany, Spain, Poland, Hungary, Czech Republic and Slovakia.
This loan is the first important project finance deal in the European digital cinema industry. It is largely covered by insurance provided by the Belgian Export Credit Agency (ONDD) for 22 European countries.
“Finally, this is the tangible result of 18 months of intensive cooperation between XDC, the three banks and six major Hollywood studios,” said Serge Plasch, XDC’s CEO. “With this loan we will now in practical terms be able to finance more than 2,000 screens across Europe.”