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Notes to the Financial Statements
11 INTEREST-BEARING BORROWINGS (CONTINUED)
To minimize the Groups’ exposure to adverse interest rate movements on its US$ denominated floating rate loans, the
Group has entered into the following hedging arrangements:
• Interest rate cap for the notional principal amount of US$37.8 million on the Treasury Building loan (2010:
US$37.8 million);
• Interest rate swap for the notional principal amount of US$55.0 million on the Central Plaza loan, effective from
22 December 2011 (2010: nil); and
• Interest rate swap for the notional principal amount of US$135.0 million on the HQ loan, effective from 26 January
2012.
The fair values of the interest rate cap and the interest rate swaps are based on the valuation undertaken by an
independent professional valuer of financial instruments.
During the year, term loans amounting to US$4.4 million and RMB169.1 million (equivalent to approximately $5.5
million and $32.5 million) (2010: 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 RMB50.0 million
and US$42.0 million (equivalent to approximately $62.2 million) (2010: US$120.0 million, equivalent to approximately
$154.0 million).
The Group also entered into a ten-year RMB loan facility of RMB170.0 million (equivalent to approximately $33.1 million)
in 2011, of which RMB104.0 million (equivalent to approximately $20.3 million) were drawn down during the year.
The Group entered into a five-year multi-currency loan facility of US$480.0 million (equivalent to approximately $617.0
million) in 2010, of which US$301.0 million (equivalent to approximately $412.9 million) and RMB410.0 million (equivalent
to approximately $83.0 million) were drawn down in 2010 and RMB133.1 million (equivalent to approximately $29.5
million) were drawn down in 2011.
SAR1112034_TCT_AR_().indb 88 3/23/2012