SEO Version
FORTERRA
ANNUAL REPORT 2013
NOTES TO THE
FINANCIAL STATEMENTS
105
10
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 $485.6 million (2012: $634.9 million) granted to
subsidiaries of the Group. The periods in which the financial guarantees expire are as follows:
Trust
2013
2012
$’000
$’000
Less than 1 year
53,097
134,474
Between 1 and 5 years
397,087
467,072
More than 5 years
35,409
33,359
485,593
634,905
At 31 December 2013, the Group does not consider it probable that a claim will be made against
the Trust under the guarantees.
11
DEBT SECURITIES
Forum convertible bonds
On 14 March 2011, the Trust issued a convertible bond (“Forum CB”) with a principal amount of
$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 $10.0
million each to three different transferees while retaining the principal balance of $29.7 million.
The Forum CB is convertible by the bondholder into units at a conversion price of $2.10 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 $2.10 and the issue value of $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.
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