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NOTES TO THE
FINANCIAL STATEMENTS
11 INTEREST-BEARING BORROWINGS (CONTINUED)
To minimise the Group’s exposure to adverse interest rate movements on its US$ denominated
floating rate loans, the Group has entered into the following hedging arrangements:
• Interest rate swap for the notional principal amount of US$55 million on the Central Plaza
loan, effective from 22 December 2011 to 22 June 2013 (2011: US$55 million); and
• Interest rate swap for the notional principal amount of US$135 million on The HQ loan (2011:
Nil), effective from 26 January 2012 to 27 January 2014.
The fair values of the interest rate swaps are based on the valuation undertaken by an independent
professional valuer of financial instruments, JC Rathbone & Associates.
During the year, term loans amounting to US$4.4 million and RMB26.3 million (equivalent to
approximately S$5.5 million and S$5.1 million, respectively) (2011: US$4.4 million and RMB169.1
million, equivalent to approximately S$5.5 million and S$32.5 million, respectively) were repaid by
the Group.
During the year, the Group successfully renewed the loan related to Forterra House with an
additional loan amount of US$10.0 million and RMB2.0 million (equivalent to approximately S$12.9
million).
The Group entered into a one-year loan facility of HKD15 million (equivalent to approximately S$2.4
million) in 2012, which was fully drawn down during the year.
The Group also entered into a ten-year development loan facility of RMB170.0 million (equivalent to
approximately S$33.1 million) in 2011, of which RMB104.0 million (equivalent to approximately S$20.3
million) were drawn down in 2011 and RMB66.0 million (equivalent to approximately S$13.1 million)
were drawn down in 2012. Following the loan draw-down in 2012, the facility has been fully utilised.
The Group entered into a five-year multi-currency loan facility of US$480.0 million (equivalent to
approximately S$617.0 million), of which US$301.0 million (equivalent to approximately S$412.9
million) and RMB410.0 million (equivalent to approximately S$83.0 million) were drawn down in
2011 and RMB173.5 million (equivalent to approximately S$34.4 million) were drawn down in 2012.