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FORTERRA

ANNUAL REPORT 2012

NOTES TO THE

FINANCIAL STATEMENTS

12 DEBT SECURITIES (CONTINUED)

Trio convertible notes

On 1 April 2011, the Trust issued four tranches of convertible notes (“Trio CB”) with a notional

amount of RMB7.0 million each and a fifth tranche with a notional amount of RMB8.0 million to

finance the Group’s acquisition of Central Park Mall. The aggregate notional amount of the Trio

CB is RMB36.0 million, equivalent to approximately S$6.9 million at the date of issuance. The five

tranches of convertible notes have the same interest rate of 6% per annum. The maturity dates of

the five tranches are 1 April 2012, 1 April 2013, 1 April 2014, 1 April 2015 and 1 April 2016, respectively.

During the current financial year, the first tranche of RMB7.0 million, equivalent to approximately

S$1.3 million, had been redeemed and the payment was agreed to be settled on a later date to be

mutually agreed. Based on the conversion price of S$2.80 and on the basis that the Singapore Dollar

equivalent of the remainder convertible notes is approximately S$5.7 million, 2,032,382 conversion

units (2011: principal amount of RMB36.0 million, equivalent to approximately S$7.4 million, 2,652,043

conversion units) may be allotted and issued by the Trustee-Manager in the event of the full

conversion of the remainder Trio CB. The remainder Trio CB may only be converted in the amount

set forth once a year on the 30th business day after the maturity date of each of the tranches set

out above. In the event of non-conversion, the Trustee-Manager will redeem each remainder tranche

in full on the same 30th business day after the maturity date of each of the tranches.

The details of debt securities are set out as follows:

Aggregate

principal

amount and

accreted

interest

outstanding*

Convertible

bond reserve

(in equity)

Derivative

financial

liability

Finance

costs

Conversion

Price

$’000

$

2012

Forum CB

69,375

2,337

–

11,455

2.10

Trio CB

5,790

–

54

482

2.80

75,165

2,337

54

11,937

2011

Forum CB

61,321

2,337

–

8,152

2.10

Trio CB

6,720

–

88

422

2.80

68,041

2,337

88

8,574

*

net of unamortised transaction costs.