FRASERS HOSPITALITY TRUST ANNUAL REPORT 2015
173
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL PERIOD FROM 20 JUNE 2014 (DATE OF CONSTITUTION) TO 30 SEPTEMBER 2015
17.
BORROWINGS (CONT’D)
Bank loans (unsecured)
(i)
The Term Loan Facilities (“TLF”) of SGD 615.0 million are unsecured and have been fully drawn down to
finance the acquisition of the investment properties during the IPO. The TLF comprises the following
tranches: Tranche A – up to SGD 115.0 million; and Tranche B – up to SGD 500.0 million.
Tranche A has a loan maturity period of 3 years from the date of first drawdown, and Tranche B has a loan
maturity period of 5 years from the date of first drawdown. The date of first drawdown for both tranches
was 14 July 2014.
(ii)
During the current financial period, FH-REIT’s subsidiary (held via FHT Australia Trust), FHT Sydney Trust
3, secured a new AUD 117.2 million term loan facility. On 7 July 2015, FHT Sydney Trust 3 fully utilised the
facility to partially finance the acquisition of Sofitel Sydney Wentworth. The loan is due 3 years from the
drawdown date.
The Trust Company (Asia) Limited (in its capacity as trustee for FH-REIT) has provided a corporate
guarantee to the lending bank in respect of the AUD 117.2 million loan.
As at 30 September 2015, FH-REIT has uncommitted Multi-Currency Short-Term Loan Facility of SGD 20.0
million which remained unutilised.
As at 30 September 2015, FH-REIT Group has an uncommitted Short-Term Revolving Credit Facility of MYR 4.0
million (equivalent to SGD 1.3 million) for the purpose of funding the Debt Service Reserve Account (if required)
in relation to the Medium Term Note, which remained unutilised. A commitment fee amounting to 0.375% per
annum of the undrawn facility is payable to the lender.
Terms and debt repayment structure
Currency
Interest rate
range
Year of
maturity
Face Value
Carrying Value
30 Sep 2015
%
$’000
$’000
FHT and FH-REIT Group
Medium term notes (secured)
MYR
4.90
2019
30,932
30,882
Bonds (unsecured)
JPY 1.37 – 1.41
2019
27,359
27,359
Bank loans (unsecured)
AUD
3.29
2018
117,329
117,006
Bank loans (unsecured)
SGD 0.94 – 1.96 2017 – 2019
615,000
609,756
Total loan and borrowings
(gross)/(net of transaction costs)
790,620
785,003
Included in the borrowings as at 30 September 2015 were borrowings of SGD 437.7 million which together with
interest rate swaps have been designated as cash flow hedges (Note 18).
FH-REIT Group’s bank loans bear floating interest rates at swap-offer rate (“SOR”) plus margin ranging from 0.7%
to 1.0% for the Singapore dollar denominated loans and at Australian dollar bank bill swap bid rate (“BBSY”) plus
margin of 1.1% for the Australian dollar denominated loan. The interest rate range disclosed above excludes the
effects of the related interest rate derivative instruments entered into by FH-REIT and its subsidiary.
