RIO DE JANIERO, Brazil: According to an authorized French source, 70 percent of the commercial bank financing is in place for Brazil’s Scorpene submarine procurement. The financing of 70 percent of the total cost is completed and will be provided by the French, the source said at the Latin American Aerospace and Defense Show on April 15.
The total package is worth $8.8 billion and includes the purchase of four DCNS-built Scorpene attack submarines.
BNP Paribas, the leading lender in the deal, has asked for a state-backed guarantee from the French. The French government was able to provide the guarantee through the export credit agency COFACE. The Brazilian government is responsible for the remaining 30 percent.
DCNS and the Brazilian Navy worked together to fulfill administrative clearances that required thousands of pages of documentation. With both the paperwork and financing in place, the contract can go into effect at the beginning of September 2009 as long as a deposit is made. The amount of the down payment is under negotiation and can vary from 5 to 15 percent of the total amount.