OID/fees as % TPC refers to the measure of Original Issue Discount (OID) and associated lender or arranger fees expressed as a percentage of Total Project Costs (TPC). In UK property development finance, this calculation provides a clearer picture of the true cost of capital by quantifying upfront deductions and non-interest expenses relative to the overall scheme cost. Unlike the headline interest rate, this percentage captures the initial pricing impact of structured loans, mezzanine debt or senior facilities. For SME developers, understanding OID/fees as % TPC is essential when comparing funding options and evaluating the overall financial viability of a property development project.
This sits beneath Instrument Features & Cost Drivers, introducing a more specific variant of the measure without changing its core interpretation. It is commonly considered alongside Margin Grid Sensitivity (LTV/LTC Bands), as both are closely related measures used to assess similar aspects of performance or risk.
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