notes to the financial statements - Far East Orchard Limited

NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 December 2008
25. Borrowings (continued)
(b) Secured liabilities (continued)
64
These facilities of the Group and the Company are secured by: (continued)
(ii) certain quoted shares in an associated company held by a subsidiary [Note 17(c)];
(iii) fixed and floating charge over all the assets of the Company and certain subsidiaries;
(iv) assignment of all rights to and benefits from the sale and purchase agreements, rental proceeds, lease
tenancies, building contracts, licences and insurance policies in respect of development properties,
investment properties and freehold and leasehold land and buildings within the Group (Notes 14, 21 and 22);
and
(v) corporate guarantee by the Company.
Medium Term Notes (“MTN”)
The MTN programme is effective for ten years from 19 September 2001 under which Notes of various amounts
at various interest rates for various periods ranging from three months to one year were issued. Unless previously
redeemed or repurchased and cancelled as provided in the terms of the MTNs, the MTNs are redeemable at their
principal amounts on their respective maturity dates from January 2009 to August 2009.
The MTNs constitute direct and unconditional obligation of the Company and are secured by:
(i) a corporate guarantee from a wholly owned subsidiary, OPH Property Limited;
(ii) a charge over monies in OPH Property Limited’s bank account, amounting to $3,000 (2007: $3,000); and
(iii) a negative pledge undertaken by the Company and OPH Property Limited.
The proceeds from the issued MTNs were utilised towards the re-financing of the Company’s borrowings.
Bonds and Notes
On 5 March 2004, the Company issued $195,000,000 five-year secured Bonds and Notes comprising $100,000,000
Fixed Rate Bonds (the “Bonds”) and $95,000,000 Floating Rate Notes (the “Notes”). The Group classifies these
Bonds and Notes as non-current as the Group has secured a new loan facility with a tenure of 3 years as at 31
December 2008 to refinance these borrowings. The new loan facility has been drawn down to repay the Bonds
and Notes subsequent to the balance sheet date.
ANNUAL REPORT 2008 ORCHARD PARADE HOLDINGS LIMITED