Page 28 - TreasuryChinaTrust

Treasury China Trust Annual Report 2010 69

NOTES TO THE FINANCIAL STATEMENTS

Period from 19 May 2010 (date of constitution) to 31 December 2010

11 Cash and cash equivalent

Group Trust 2010 2010 $’000 $’000

Total cash and cash equivalent 103,930 22,961 Less: Restricted cash (4,920) – Cash and cash equivalents per statement of cash flows 99,010 22,961

Restricted cash relates to funds deposited in interest reserve accounts to repay borrowings as they become due.

The weighted average effective interest rate per annum relating to cash and cash equivalents at the balance sheet date ranges from 0% to 1.17%. Interest rates reprice at intervals of one, three or six months.

Refer to Note 26 for foreign currency balances held. RMB is not a freely convertible currency and the remittance of funds out of the PRC is subject to exchange restrictions imposed by the PRC government.

12 Interest-bearing borrowings

Group 2010 $’000

Secured term loans 666,275 Less: Unamortised transaction costs (9,817)

656,458

Maturity of liabilities

Within 1 year 6,842 After 1 year but within 5 years 649,616

656,458

The bank loans are secured by legal mortgages over City Center, Central Plaza and Treasury Building (collectively, the “Mortgaged Properties”). The term loan facilities have negative pledge covenants which require the Group amongst others:

(i) not to, without the prior written consent of the lender, cause, suffer or permit to exist or to be created, incurred or assume any lien on any portion of the Mortgaged Properties;

(ii) not to have any dividend declared by Grand Eastern Limited (immediate holding company of Shanghai Vision Honest) to its shareholders;

(iii) maintain loan to valuation (“LTV”) ratio in respect of the Mortgage Properties as follows:

• City Center: LTV shall not exceed 50% • Central Plaza: LTV shall not exceed 55% • Treasury Building: LTV shall not exceed 60%

During the period, term loans amounting to US$343.5 million and RMB821.5 million (equivalent to approximately $462.0 million and $166.3 million) were repaid by the Group. To finance the loan repayment, the Group entered into a three-year multi-currency loan facility of US$120.0 million (equivalent to approximately $154.0 million), of which US$110.0 million (equivalent to approximately $141.4 million) was drawn down during the period; the Group also entered into a five-year multi-currency loan facility of US$480.0 million (equivalent to approximately $617.0 million), of which US$110.0 million (equivalent to approximately $141.4 million), US$301.0 million (equivalent to approximately $412.9 million) and RMB410.0 million (equivalent to approximately $83.0 million) were drawn down during the period.