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Financial
Statements
115 Management Reports
10 INTEREST–BEARING BORROWINGS
Note
Group Trust
2013 2012 2013 2012
$’000 $’000 $’000 $’000
Unsecured term loans (a) 456,465 410,847 435,503 388,503
Secured loans (b) 216,993 – – –
Money market facilities 40,000 55,000 40,000 55,000
Less: Unamortised transactions costs (1,120) (485) (1,120) (485)
712,338 465,362 474,383 443,018
(a) Unsecured term loans comprise $100.0 million, $88.0 million, $50.5 million, three $50.0 million, $47.0 million
fixed/floating rate trust term loans (collectively known as “Trust Term Loan Facilities”) and a Renminbi (“RMB”)
term loan of $21.0 million (RMB102.4 million). These facilities have negative pledge covenants which require the
Trust, amongst others:
(i) not to, without the prior written consent of the lender, create or have outstanding any security on or
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(ii) in the event of a sale of any of the investment properties, to repay an amount equal to the proportion of
themarket value of the investment properties sold to the total market value of the investment properties
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and
(iii) not to provide any guarantee for any other entities except for secured borrowings for new investment
properties acquired with existing mortgages.
The Trust Term Loan Facilities are repayable in full at maturity, although the Trust has the option to make
early prepayments.
In respect of the unsecured RMB term loan, 20% of the original RMB term loan principal of RMB128.0 million
is repayable on a semi–annual basis in equal instalments starting in 2012 and the remaining 80% is payable
in full upon maturity of the RMB term loan on 30 June 2014.
(b) Secured loans comprise of a RMB term loan of $106.5 million (RMB520 million) and a RMB bridge loan of
$110.5 million (RMB540 million). Interest rates for these loans bear interest referenced against the 3 to 5 years
People’s Bank of China (“PBOC”) base lending rate and 1 year PBOC base lending rate respectively.
As security for the loans, the Trust has granted in favour of the lender the following:
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(iii) an assignment of the insurance policies relating to CapitaMall Grand Canyon.
In respect of the secured RMB term loan, RMB12.5 million is payable on a semi-annual basis from June 2014.
The outstanding loan balance of RMB407.5 million will be repaid on final maturity on 19 December 2018. The
bridge loan is payable within 1 year from the drawdown date.