Appendix 2: Trinidad Competitive Advantage over Venezuela Debt Finance

• Author: Wendell Mottley
• Profession: New York-based Investment Banker having previously served as executive director of the company which eventually became the pivot of Trinidad and Tobago s natural gas-led industrialization and as Minister of Finance, credited with playing a decisive role in setting Trinidad and Tobago on a sustained path of growth from 1994 onwards
• Pages: 217-218

217

APPENDIX 1I

APPENDIX II:

TRINIDAD COMPETITIVE ADVANTAGE

OVER VENEZUELA DEBT FINANCE

Venezuela’s Debt Finance

Source:Credit Suisse Debt Capital Markets group as of March 2008

Assumptions

Total Debt Financing $1,000,000,000

Payment Period Semi-annual

Discount Rate 10.00%

Venezuela

Interest Rate 10.06%

Semi-annual Interest Rate 5.03%

S&P Ratings BB-

Periods Dates

Beginning

Outstanding

Principle

Interest Amortization Total Payment

Ending

Outstanding

Principle

1 01/03/2007

$1,000,000,000 ($50,300,000) ($66,666,667) ($116,966,667) $933,333,333

2 01/09/2007 $933,333,333 ($46,946,667) ($66,666,667) ($113,613,333) $866,666,667

3 01/03/2008 $866,666,667 ($43,593,333) ($66,666,667) ($110,260,000) $800,000,000

4 01/09/2008 $800,000,000 ($40,240,000) ($66,666,667) ($106,906,667) $733,333,333

5 01/03/2009 $733,333,333 ($36,886,667) ($66,666,667) ($103,553,333) $666,666,667

6 01/09/2009 $666,666,667 ($33,533,333) ($66,666,667) ($100,200,000) $600,000,000

7 01/03/2010 $600,000,000 ($30,180,000) ($66,666,667) ($96,846,667) $533,333,333

8 01/09/2010 $533,333,333 ($26,826,667) ($66,666,667) ($93,493,333) $466,666,667

9 01/03/2011 $466,666,667 ($23,473,333) ($66,666,667) ($90,140,000) $400,000,000

10 01/09/2011 $400,000,000 ($20,120,000) ($66,666,667) ($86,786,667) $333,333,333

11 01/03/2012 $333,333,333 ($16,766,667) ($66,666,667) ($83,433,333) $266,666,667

12 01/09/2012 $266,666,667 ($13,413,333) ($66,666,667) ($80,080,000) $200,000,000

13 01/03/2013 $200,000,000 ($10,060,000) ($66,666,667) ($76,726,667) $133,333,333

14 01/09/2013 $133,333,333 ($6,706,667) ($66,666,667) ($73,373,333) $66,666,667

15 01/03/2014 $66,666,667 ($3,353,333) ( $66,666,667) ($70,020,000) $0

$1,000,000,000

NPV $755,014,768