BUILDING LANDMARKS, CHARTING GROWTH
227
Annual Report 2015
NOTES TO THE FINANCIAL STATEMENTS
13 JUNIOR BONDS
Group
31/12/2015
30/6/2014
$’000
$’000
Junior bonds (secured)
143,924
–
The junior bonds were issued by certain subsidiaries of the Group (the “Subsidiaries”).
Term and debt repayment schedule
Nominal
Year of
Face
Carrying
Currency interest rate
maturity
value
amount
%
$’000
$’000
31/12/2015
Lower of 10%
per annum and
Junior bonds (secured)
SGD excess fund*
2018 – 2020
144,042
143,924
* Excess fund is determined based on the profits of the Subsidiaries for the period before interest on junior bonds.
The junior bonds are secured on the following but subordinated to senior borrowings of the Subsidiaries:
(i)
a legal mortgage over the investment properties (see note 5);
(ii)
an assignment of the insurance policy relating to the investment properties; and
(iii)
an assignment of all the rights, benefit, title and interest of the Subsidiaries in relation to the sale and purchase
agreements and tenancy agreements (including sale proceeds and rental proceeds) relating to investment properties.
14 REDEEMABLE PREFERENCE SHARES
Group
31/12/2015
30/6/2014
$’000
$’000
Redeemable preference shares
47,613
–
2,290,000 redeemable preference shares were issued by a subsidiary of the Group (the “Subsidiary”) at $41.75 per share.
All issued shares are fully paid. The Subsidiary may, at any time, by way of a directors’ resolution, redeem the whole or
some of the redeemable preference shares, by payment of $41.75 per share (“Redemption Amount”) upon giving to each
holder whose redeemable preference shares to be redeemed a redemption notice. The Subsidiary is obliged to pay,
subject to the recommendation of the asset manager, the balance of any distributable profits, after all relevant interest on
the secured bank loans and the secured junior bonds have been fully paid and setting aside any amounts that may be
required to be reserved for capital expenditure.
