Having previously identified the location of its Greenfield investment, Acme, a multi-billion public MNE that is incorporated in the U.S., must next obtain external financing for its proposed overseas production facility. It has been estimated that the acquisition will cost $500M and all funds will be secured in the U.S. Your job is to explain to this committee some of the financial aspects of this acquisition.

To obtain external financing for Acme's proposed overseas production facility, there are several financial aspects to consider. Here are some key points to address:

1. Source of Financing: Acme needs to determine the source from which it intends to obtain the $500M required for the acquisition. This could include options such as bank loans, issuance of corporate bonds, private equity investments, or government loans.

2. Cost of Financing: Acme should analyze the costs associated with each financing option. This includes considering interest rates, fees, and potential risks involved. Comparing different financing proposals can help determine the most cost-effective option.

3. Currency Risk Management: Since the investment is in a foreign country, Acme needs to evaluate the potential currency risks. Exchange rate fluctuations can impact the cost of borrowing and repayment terms. Employing risk management strategies such as hedging techniques or using local currency financing can mitigate these risks.

4. Legal and Regulatory Considerations: Acme must understand and comply with the legal and regulatory requirements of both the U.S. and the foreign country where the investment will take place. This includes compliance with securities, tax, and foreign investment laws.

5. Repayment Terms: Acme needs to establish a repayment plan, including the timeline and terms for repaying the external financing. It should ensure that its projected cash flows from the overseas facility are sufficient to cover repayment obligations, taking into account factors such as operating costs, taxes, and potential revenue streams.

6. Financial Reporting: Acme should consider the financial reporting requirements associated with external financing. This includes providing periodic financial statements and reports to lenders or investors, following applicable accounting standards and regulations.

7. Due Diligence: Acme should conduct a thorough due diligence process before finalizing any financial agreements. This involves assessing the financial strength and credibility of potential lenders or investors, evaluating their track record, conducting background checks, and seeking professional advice if needed.

It is important for Acme to consult with financial advisors, legal experts, and experts in international business to ensure a well-informed and successful acquisition.