Notes to the financial statements
Year ended 31 March 2016
16 Exchangeable Collateralised Securities and collateral loan
Group
2016
2015
$’000
$’000
Exchangeable Collateralised Securities (“ECS”)
At 1 April
366,024
341,091
Change in fair value of ECS
(12,024)
24,933
At 31 March
354,000
366,024
Current
354,000
–
Non-current
–
366,024
354,000
366,024
Trust
2016
2015
$’000
$’000
Collateral loan
At 1 April
366,024
341,091
Change in fair value of collateral loan
(12,024)
24,933
At 31 March
354,000
366,024
Current
354,000
–
Non-current
–
366,024
354,000
366,024
In March 2010, a collateral loan of $300.0 million (“Collateral Loan”) was granted by Ruby Assets Pte. Ltd. (“Ruby
Assets”) to the Trust. The maturity date of the Collateral Loan is 1 February 2017 and it bears a fixed interest rate of
1.60% per annum.
As collateral for the Collateral Loan granted by Ruby Assets, the Trustee has granted in favour of Ruby Assets the
following:
•
a mortgage over 19 properties in the Trust portfolio;
•
an assignment and charge of the rental proceeds and tenancy agreements of the above mentioned properties;
•
an assignment of the insurance policies relating to the above mentioned properties; and
•
a fixed and floating charge over certain assets of the Trust relating to the above mentioned properties.
In order to fund the Collateral Loan to the Trust, Ruby Assets issued $300.0 million ECS on 26 March 2010. The ECS bear
a fixed coupon of 1.60% per annum and have an expected maturity date of 1 February 2017. The Collateral Loan has the
same terms mirroring that of the ECS.
The ECS are exchangeable by the ECS Holders into new Units at the adjusted exchange price of $2.0505 (FY14/15:
$2.1394) per Unit, at any time on and after 6 May 2010 up to the close of business on 23 January 2017 (subject to
satisfaction of certain conditions). The Group has the option to pay cash in lieu of delivering the Units.
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A-REIT ANNUAL REPORT
2015/2016
