Page 84 - Forterra

82 FORTERRA
ANNUAL REPORT 2012
NOTES TO THE
FINANCIAL STATEMENTS
11 INTEREST-BEARING BORROWINGS
Group
Note 2012 2011
$’000 $’000
Unsecured borrowings
Convertible debt securities
Amount repayable within one year 12 5,170 3,218
Amount repayable after one year 12 71,267 66,275
76,437 69,493
Less: Unamortised transaction costs1 (1,272) (1,452)
75,165 68,041
Secured borrowings
Loans
Amount repayable within one year 23,377 69,367
Amount repayable after one year 655,432 785,917
678,809 855,284
Less: Unamortised transaction costs1 (6,529) (12,313)
672,280 842,971
Total borrowings2 747,445 911,012
1 Unamortised transaction costs relate to loans repayable after one year.
2 Total borrowings as at 31 December 2012 exclude borrowings for the Properties.
The bank loans are secured by legal mortgages over each specific property excluding 3 development
sites of Central Park Mall (collectively, the “Mortgaged Properties”) and a pledge of the equity
interest in the property company which holds The HQ. The equity interest of each of the property
companies which hold Forterra House, Central Plaza and Huai Hai Mall are also required to be
pledged as security for the bank loans. As at 31 December 2012, applications in conjunction with
the banks for the pledge of equity interests in the property companies which holds Forterra House,
Central Plaza and Huai Hai Mall are in progress. 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 Mortgaged Properties as follows:
• The HQ Existing: LTV shall not exceed 50%
• The HQ Extension: LTV shall not exceed 60%
• Central Plaza: LTV shall not exceed 55%
• Forterra House: LTV shall not exceed 60%
• Huai Hai Mall: LTV shall not exceed 55%