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Annual Report 2014 | S P SETIA BERHAD GROUP | 173

NOTES TO THE FINANCIAL STATEMENTS

For the year ended 31 October 2014

V. FINANCIAL STATEMENTS

25. LONGTERM BORROWINGS (CONT’D)

The range of interest rates at the reporting date for borrowings are as follows:

Group

Company

2014

2013

2014

2013

%

%

%

%

Restated

Term loans

1.37 - 14.40

1.38 – 14.25

3.85 – 4.59

3.85 - 4.35

Bridging loans

4.08 - 5.11

4.08 – 4.53

-

-

Revolving credits

4.03 - 14.40

4.15 – 14.48

-

-

Medium term note and Commercial paper

4.03 - 4.33

4.03

-

-

The long term borrowings are secured by:

• various fixed charges and deeds of assignment over various lands belonging to the Group as indicated in notes 2, 3, 4 and 14 above;

• sinking fund, debt service reserve, escrow and revenue accounts as indicated in notes 20 and 21 above; and

• fixed and floating charges on assets of a subsidiary company.

MediumTerm Notes (“MTN”) and Commercial Paper (“CP”)

In 2012, a wholly owned subsidiary of the Group, Setia Ecohill Sdn Bhd (“Setia Ecohill”) issued MTN and CP with a total nominal value of

RM505 million (the “Programmes”). The Programmes comprise the issuance of two (2) tranches, collectively known CP/MTN Programme:

(i) Tranche 1 : MTN Issuance - Up to RM305 million to part finance the purchase of freehold land with tenure of up to 7 years from the date

of the first issuance; and

(ii) Tranche 2 : CP Issuance - Up to RM200 million to finance the working capital requirement with tenure of up to 7 years from the date

of the first issuance.

The interest payment is due every month with the interest rate between 4.03% to 4.33% per annum, commencing from the issue date

of the relevant tranches.

The MTN/CP are secured by a first party fixed charge over the freehold land and development expenditure belonging to Setia Ecohill and

a corporate guarantee from the Company.

Setia Ecohill has utilised the entire issuance of the MTN of RM305 million, whilst the Tranche 2 CP was utilised up to RM140 million as

at 31 October 2014.

As at 31 October 2014, the MTN with nominal value of RM67 million was redeemed.

The currency exposure profile of long term borrowings is as follows:

Group

Company

2014

2013

2014

2013

RM’000

RM’000

RM’000

RM’000

Restated

Ringgit Malaysia

2,616,043

2,817,101

500,000

700,000

Singapore Dollar

386,370

432,934

-

-

Australian Dollar

367,110

70,558

-

-

United States Dollar

18,412

15,671

-

-

3,387,935

3,336,264

500,000

700,000