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Financial
Statements
195
14 INTEREST-BEARING BORROWINGS
(continued)
(2) Unsecured retail bonds of the Trust
On 25 February 2013, the $300.0 million bonds issued under the $2.5 billion Retail Bond Programme was
repaid. The bonds were issued on 25 February 2011 and carried an interest of 2.0% per annum.
(3) Secured term loans of RCS Trust
The secured term loan and revolving credit facility by the RCS Trust were granted by a special purpose
company, Silver Oak Ltd (“Silver Oak”).
Silver Oak has on 21 June 2011 granted RCS Trust a term loan facility of $1,000.0 million and a revolving credit
facility (“RCF”) of $300.0million under the loan agreements between Silver Oak and RCS Trust Trustee-Manager.
As at 31 December 2013, the total loans drawn down by RCS Trust from Silver Oak are $1,007.0 million (2012:
$1,000.0 million), consisting of:
(i)
term loan of $800.0 million (2012: $800.0 million) at a fixed rate of 3.09% per annum, fully repayable on
21 June 2018. In the event the loan is not prepaid in full on 21 June 2016, interest will accrue on the loan
at the rate of 4.565% above the Singapore dollar Swap Offer Rate (“SOR”) repriced every three months,
for the period from 21 June 2016 to 21 June 2018;
(ii) term loan of $200.0 million (2012: $200.0 million) at a fixed rate of 3.025% per annum, fully repayable
on 21 June 2018. In the event the loan is not prepaid in full on 21 June 2016, interest will accrue on the
loan at the rate of 2.23% above the Singapore dollar SOR repriced every three months, for the period
from 21 June 2016 to 21 June 2018; and
(iii) RCF of $300.0 million of which $7.0 million (2012: Nil) was drawn down at a floating rate of 1.23%
per annum above the Singapore dollar SOR, fully repayable on 21 June 2018. In the event the facility
is not prepaid in full on 21 June 2016, interest will accrue on the facility at the rate of 2.23% above the
Singapore dollar SOR repriced every three months, for the period from 21 June 2016 to 21 June 2018.
As security for the facilities granted by Silver Oak to the RCS Trust Trustee-Manager, the RCS Trust
Trustee-Manager has granted in favour of Silver Oak the following:
(i)
a mortgage over Raffles City Singapore;
(ii) an assignment of the insurance policy relating to Raffles City Singapore;
(iii) an assignment of the agreements relating to the management of Raffles City Singapore;
(iv) an assignment and charge of the rental proceeds and tenancy agreements of units in Raffles City
Singapore; and
(v) a fixed and floating charge over certain assets of RCS Trust relating to Raffles City Singapore.
As at 31 December 2013, the Group’s 40.0% share of RCS Trust’s term loans and the amount drawn down
under RCF are $400.0 million (2012: $400.0 million) and $2.8 million (2012: Nil) respectively.