EIB to Lend up to EUR 65 million to XDC for its European Digitization Rollout Plans
Submitted by Anonymous on Fri, 02/26/2010 - 11:53.
The European Investment Bank will grant financing of up to EUR 65 million to XDC in the framework of the financing structured by BNP Paribas Fortis to contribute to its digitization rollout plans in Europe.
The loan facility granted by BNP Paribas Fortis, KBC, CBC and the EIB – the financing institution of the European Union – would finance digital cinema equipment aimed to be deployed in European cinemas in the scope of the virtual print fee co-financing scheme. The proposal, based on cost sharing between exhibitors and distributors, has been signed by XDC with the six major Hollywood studios to convert up to 8,000 screens to digital over the next four years.
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 in this structure through a specific and tailor made vendor-financing program.
"Financing capacity and technical innovation are key matters for XDC’s business plan execution,” says Serge Plasch, XDC’s CEO. “This EIB loan facility will secure our long term senior debt requirements. Moreover, this will allow XDC to emphasize its R&D projects to serve the market with innovative solutions.”
EIB President Philippe Maystadt says, “We are pleased to support the development of XDC. It has created its unique position as a key contributor in its field, bringing added-value to the distributors and exhibitors going to digital, and becoming a leader in the high-tech world of cinema.”
The European Investment Bank www.eib.org
The loan facility granted by BNP Paribas Fortis, KBC, CBC and the EIB – the financing institution of the European Union – would finance digital cinema equipment aimed to be deployed in European cinemas in the scope of the virtual print fee co-financing scheme. The proposal, based on cost sharing between exhibitors and distributors, has been signed by XDC with the six major Hollywood studios to convert up to 8,000 screens to digital over the next four years.
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 in this structure through a specific and tailor made vendor-financing program.
"Financing capacity and technical innovation are key matters for XDC’s business plan execution,” says Serge Plasch, XDC’s CEO. “This EIB loan facility will secure our long term senior debt requirements. Moreover, this will allow XDC to emphasize its R&D projects to serve the market with innovative solutions.”
EIB President Philippe Maystadt says, “We are pleased to support the development of XDC. It has created its unique position as a key contributor in its field, bringing added-value to the distributors and exhibitors going to digital, and becoming a leader in the high-tech world of cinema.”
The European Investment Bank www.eib.org
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