103
LIPPO MALLS INDONESIA RETAIL TRUST ANNUAL REPORT 2014
22. OTHER FINANCIAL LIABILITIES (CONT’D)
22A. Bank loan (secured)
The bank loan of $147,500,000 was fully repaid in January 2014. Interest was payable quarterly at the swap offer
rate (“SOR”) plus a margin. However, as described in Note 26A, an interest rate swap had been entered into that
partially converted interest rates to fixed rates.
In December 2014, the Trust draw down on its secured bank loan facility of $155,000,000, maturing in December
2018 at an interest rate of 3.0% per annum plus SGD swap offer rate (“SOR”).
The bank loan agreement provides among other matters for the following:
(i)
The Trust to procure that none of its subsidiaries will create or have any outstanding security over the relevant
retail malls and spaces, the shares and the charged assets (collectively “Relevant Assets”). The carrying amount
of the relevant assets at the end of the reporting year was $478,872,000 (2013: $462,811,000).
(ii)
The Trust shall not without prior consent in writing from the lender:
(a)
sell, transfer or dispose any of the Relevant Assets on terms whereby they are leased or re-acquired by
any other members of the Group;
(b)
sell, transfer or dispose any of its receivables in relation to the Relevant Assets on recourse terms;
(c)
enter into any arrangement in relation to the Relevant Assets, under which money or the benefit of a
bank or other account may be applied, set off or made subject to a combination of accounts; and
(d)
enter into any preferential arrangement in relation to the Relevant Assets having a similar effect;
in circumstances where the arrangement or transaction is entered into primarily as a method of raising financial
indebtedness or of financing the acquisition of an asset.
The bank loan is at floating rates of interest. The fair value (Level 2) of the bank loan is reasonable approximation of
the carrying amount as it is a floating rate instrument that is frequently re-priced to market interest rates.
22B. Medium term notes (unsecured)
On 25 June 2012, a wholly-owned subsidiary, LMIRT Capital Pte Ltd (“LMIRT Capital”) established a $750,000,000
Guaranteed Euro Medium Term Note Programme (“EMTN Programme”). Under this EMTN Programme, LMIRT Capital
may, subject to compliance with all relevant laws, regulations and directives, from time to time issue notes in series or
tranches. Each series or tranche of notes may be issued in various currencies and tenor, and may bear fixed, floating
or variable rates of interest. Zero coupon notes, Dual currency notes, or Index Linked notes may also be issued under
the EMTN Programme. All sum payable in respect of the notes will be unconditionally and irrevocably guaranteed by
the Trustee.
The total facility drawn down by the Group as at 31 December 2014 under the EMTN Programme is $475,000,000
(2013: $475,000,000), consisting of:
(i)
$200,000,000 4.88% notes due 2015. The $200,000,000 notes were issued on 6 July 2012 and will mature
on 6 July 2015 and bear a fixed interest rate of 4.88% per annum payable semi-annually in arrears;
(ii)
$50,000,000 5.875% notes due 2017. The $50,000,000 notes were issued on 6 July 2012 and will mature
on 6 July 2017 and bear a fixed interest rate of 5.875% per annum payable semi-annually in arrears;
(iii)
$75,000,000 4.48% notes due 2017. The $75,000,000 notes were issued on 28 November 2012 and will
mature on 28 November 2017 and bear a fixed interest rate of 4.48% per annum payable semi-annually in
arrears; and
(iv)
$150,000,000 4.25% notes due 2016. The $150,000,000 notes were issued on 4 October 2013 and will
mature on 4 October 2016 and bear a fixed rate of 4.25% per annum payable semi-annually in arrears.
The fair value of the fixed rate notes (Level 1) is $479,999,000 (2013: $480,348,000).
The notes were listed on the Singapore Exchange Securities Trading Limited.
Notes to the Financial Statements
(Cont’d)
31 December 2014
