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11 INTEREST-BEARING BORROWINGS
Group
2011 2010
$’000 $’000
Unsecured borrowings
Convertible debt securities
Amount repayable within one year (Note 12) 3,218 –
Amount repayable after one year (Note 12) 66,275 –
69,493 –
Less: Unamortised transaction costs* (1,452) –
68,041 –
Secured borrowings
Loans
Amount repayable within one year 69,367 6,842
Amount repayable after one year 785,917 659,433
855,284 666,275
Less: Unamortised transaction costs* (12,313) (9,817)
842,971 656,458
911,012 656,458
* Unamortised transaction costs relate to loans repayable after one year
The bank loans are secured by legal mortgages over each specific property excluding 3 development sites of Central
Avenue Mall (collectively, the “Mortgaged Properties”) and pledge of the equity interests in the property company of
the HQ. The equity interests of each of the property companies of Treasury Building, Central Plaza and Huai Hai Mall
are also required to be pledged using best efforts with the applicable authority. As at 3 December 2011, applications
for the equity interest pledge of each of Treasury Building, Central Plaza and Hua Hai Mall are ongoing. The term loan
facilities have legal 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) to conform to various negative pledge covenants which impose certain restrictions on dividend payment by
some entities in the Group;
(iii) to maintain loan to valuation (“LTV”) ratio in respect of the Mortgage Properties as follows:
• The HQ: LTV shall not exceed 50%
• Central Plaza: LTV shall not exceed 55%
• Treasury Building: LTV shall not exceed 60%
• Huai Hai Mall: LTV shall not exceed 55%
SAR1112034_TCT_AR_().indb 87 3/23/2012