Ann: Gulf's Kupang Smelting Hub Facility Fully Funded, page-41

I like equity markets and risk when instos and shareholders have the same risk return situation.

PT JGI have the same return scenario as shareholders here, except they have secured debt, and got in at 32% (effective price $0.005).

Corporate finance theory will tell you that debt is cheaper than equity, as debt is less risky than equity.

In this scenario, and at current prices equity is more expensive than debt.

Debt holders have the same upside but managed to get in at a significant discount ($6M for 25%) with security. That summarises this investment proposition in a nutshell.

Equity should always be more expensive - ie. Trade at a discount to debt. Never the other way around.