Page 172 - S P Setia Annual Report 2016
P. 172

170   S P Setia Berhad Group
                Annual Report 2016




          Notes To The Financial Statements

          For The Financial Year Ended 31 December 2016

          23.   BORROWINGS (CONT’D.)

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

                                                                        Group                      Company
                                                                      2016          2015          2016          2015
                                                                        %             %              %             %
               Term loans                                        2.45 - 7.80   1.59 - 8.00    2.45 - 4.91   2.98 - 4.76
               Bridging loans                                    4.22 - 4.52    4.40 - 5.21          -             -
               Revolving credits                                 4.27 - 5.16    4.10 - 5.15   4.27 - 5.16   4.38 - 4.76
               Medium term note and Commercial paper             4.13 - 4.55   4.33 - 4.39           -             -
               Bank overdrafts                                   4.14 - 7.47   4.23 - 7.60   4.36 - 4.70    4.23 - 4.70

              The 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 12
                   above; and
              •    short-term deposits, sinking fund, debt service reserve, escrow and revenue accounts as indicated in Notes 17 and 18 above.

              Medium Term 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 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.

              In 2016, the total nominal value of issued MTN and CP increased to RM580 million, with the issuance of tranche below:

              (iii)   Tranche 3: CP Issuance - Up to RM75 million to finance the infrastructure costs, earth works and development costs with tenure
                   up to 7 years from the date of first issuance.

              The interest payment is due every month with the interest rate between 4.13% to 4.55% 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 belonging to Setia Ecohill and a corporate guarantee from
              the Company.

              As at 31 December 2016, Setia Ecohill has utilised the entire issuance of the Tranche 1 MTN of RM305 million, Tranche 2 CP of RM200
              million and Tranche 3 CP of RM75 million.
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