Page 71 - TreasuryChinaTrust

Treasury China Trust Annual Report 2010 26

TRUSTEE-MANAGER’S REPORT

China’s Infrastructure Investment

0

5,00

1,000

1,500

2,000

2,500

2005 2006 2007 2008 2009 2010

RMB billion

Rail Shipping Road

Source: China National Statistics Bureau

Loan Portfolio

During 2010 TCT completed the refinance of the entirety of its loan portfolio, equivalent to S$656.5 million. The table below outlines the current loan expiry profile which now comprises 85% US Dollar denominated loans and 15% in RMB.

In addition to maximising the benefits of TCT’s revenue being denominated in RMB, which recommenced its path of gradual appreciation in June 2010, the predominantly US Dollar nature of the loan portfolio has also enabled TCT to significantly reduce its interest costs.

Total Debt S$656.5 million

S$ million

9%

22%

69%

Debt Maturity Profile

0

50

100

150

200

250

300

350

400

450

500

550

600

650

700

US$ floating rate term loan RMB floating rate term loan

RMB denominated loans 15%

US$ denominated loans 85%

Total Borrowing 2012 1 2013 2015

Average Annual Cost of Debt

2009

7.22%

6.05%

4.03%

2010 2010 2

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%