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NOTES TO THE

FINANCIAL STATEMENTS

11

INTEREST-BEARING BORROWINGS (CONTINUED)

Intra-group financial guarantees

Intra-group financial guarantees comprise guarantees given by the Trust to banks in respect of

various banking facilities amounting to S$634.9 million (2011: S$661.1 million) granted to subsidiaries

of the Group. The periods in which the financial guarantees expire are as follows:

Trust

2012

2011

$’000

Less than 1 year

134,474

191,948

Between 1 and 5 years

467,072

434,110

More than 5 years

33,359

35,066

634,905

661,124

At the reporting date, the Group does not consider it probable that a claim will be made against

the Trust under the guarantees.

12 DEBT SECURITIES

Forum convertible bonds

On 14 March 2011, the Trust issued a convertible bond (“Forum CB”) with a principal amount of

S$59.7 million to finance the Group’s acquisition of Huai Hai Mall and Central Park Mall.

On 31 January 2013, the bondholder completed the transfer of three principal amounts of S$10.0

million each to three different transferees while retaining the principal balance of S$29.7 million.

The Forum CB is convertible by the bondholder into Units at a conversion price of S$2.1 at any

time on or after 40 days following 14 March 2011 up to seven business days prior to 17 September

2014 (subject to the satisfaction of certain conditions), or if the Forum CB have been called for

redemption before 17 September 2014, then up to seven business days prior to the date fixed for

redemption thereof. Based on the conversion price of S$2.10 and the issue value of S$59.7 million,

28,428,571 conversion units may be allotted and issued by the Trustee-Manager in the event of the

full conversion of the Forum CB.

Unless previously redeemed (following the exercise of a Delisting/Change of Control Put Right),

converted or purchased and cancelled, the Trustee-Manager will redeem the Forum CB on

17 September 2014.

The Forum CB bears cash interest on the outstanding principal amount of the bond at the rate of

6.0% per annum. The principal amount of the bond plus an additional amount necessary to result

in a yield of 16.75% per annum, compounded semi-annually (less all cash interest paid), shall be

payable upon redemption on 17 September 2014.