NOTES TO THE FINANCIAL STATEMENTS
(CONT’D)
31 DECEMBER 2015
22.
OTHER FINANCIAL LIABILITIES (CONT’D)
22A.
Bank loans (cont’d)
Secured (cont’d)
(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 fair value (Level 2) of the bank loan is a reasonable approximation of the carrying amount as it is a floating
rate instrument that is frequently re-priced to market interest rates.
In 2015, the Trust entered into interest rate swap contracts to convert the floating interest rate borrowings to
fixed rate exposure, ranging from 1.85% to 1.88% per annum, for a total notional amount of $155,000,000 (Note
26A). The contracts will expire on 16 December 2018.
Unsecured
On 6 July 2015, the Trust drew down an unsecured bridging loan of $200,000,000 maturing on 4 January 2016,
at an interest rate margin of 3% plus the relevant swap rate to refinance the $200,000,000 4.88% EMTN notes
(Note 22B).
In November 2015, the Group issued $100,000,000 4.50% notes due 2018 (Note 22B) to partially refinance this
unsecured bank borrowings.
On 30 December 2015, the Group signed a facility agreement for a total commitment of $100,000,000. On 4 January
2016, the Group drew down the facility of $100,000,000 to repay the bridging loan upon its maturity (Note 32).
LIPPO MALLS INDONESIA RETAIL TRUST
116
