Q. A bond issue cannot be moved into the subsidiary also no tax break will be given to the parent company because it funds a FDI. Also, two issues will be needed, so the company would have to do it twice allowing for the need at least 200M USD, doubling the fee costs presented in the spreadsheet. If the private placement is utilized, it can be transferred to the subsidiary also the tax break plus depreciation is saved which in the end reduces the cost also not in the spread sheet.

Do you still want to issue the bond? IF so, why? Will you get the remainder from the loan of 75 M At 7.5%? I such as taking the whole 75 M now which the cost is clear because it is easily transferable to the subsidiary. The Private placement is easily transferable to the subsidiary, with a 10 yr maturity which can be paid off earlier, simply by putting it in the the contract-A bond could not do this. Once issued by the parent, It stays which way also all transfer benefits (tax breaks) are lost forever.