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Notes to the financial statements
As at the balance sheet date, A-REIT has in place various bilateral banking credit facilities and transferable loan
facilities totalling $1,220 million (2009: $1,120 million) of which $552 million (2009: $549 million) has been utilised
at the balance sheet date. Included in that amount of $1,220 million is a sub-limit of $50 million facility for the
issuance of letters of guarantee.
The weighted average all-in cost of borrowings, including margins charged on the loans, amortised and annual
costs of the MTN Programme as at 31 March 2010 is 3.94% (2009: 3.67%).
Term loans
Term loans include loans granted by a special purpose vehicle, Emerald Assets Limited (“Emerald Assets”), and
a loan granted by a financial institution under a transferable loan facility.
The term loan granted under the transferable loan facility of $300 million (2009: $300 million) has a maturity date
of 31 March 2017 (2009: 31 March 2010) and bears interest at an interest rate of Singapore swap offer rate plus
a margin.
Three term loans of $300 million, $350 million and $395 million, with maturity dates of 18 August 2009, 12 May
2012 and 14 May 2014 respectively, were granted by Emerald Assets. The $300 million term loan which was due
in August 2009 was repaid on the due date. 14 properties that were mortgaged as security in favour of Emerald
Assets were discharged following the repayment of this term loan. The $350 million term loan which was due
in May 2012 was early redeemed in March 2010. With the repayment of the $350 million term loan, a further 23
properties have been discharged from the mortgage to Emerald Assets.
The remaining term loan of $395 million granted by Emerald Assets, issued on 14 May 2007, at an interest rate of
0.20% above the Singapore swap offer rate will mature on 14 May 2014. As security for this credit facility granted
by Emerald Assets, the Trustee of A-REIT has granted in favour of Emerald Assets the following:
(i) a mortgage over the properties making up “Portfolio 3” (Portfolio 3 includes 36 properties, of which 29
were acquired between May 2005 and February 2007 and 7 were acquired before July 2004);
(ii)
(iii)
an assignment and charge of the rental proceeds and tenancy agreements in the Portfolio 3 properties;
an assignment of the insurance policies relating to the Portfolio 3 properties; and
(iv) a charge creating a fixed and floating charge over certain assets of A-REIT relating to the Portfolio 3
properties.
Emerald Assets entered into an arrangement for a $5 billion Medium Term Note Programme (“MTN Programme”).
Where it may, subject to compliance with all relevant laws, regulations and directives, from time to time, issue
fixed or floating interest rate notes (the “Notes”). The maximum aggregate principal amount of the Notes to
be issued shall be $5 billion. The Notes will be secured by debentures creating fixed and floating charges over
properties and assets owned by A-REIT. To fund the $1,045 million floating rate term loans granted to A-REIT,
Emerald Assets has issued Euro 144 million of Medium Term Note for a period of five years to 4 August 2009
and Euro 165 million of Medium Term Note for a period of seven years to 12 May 2012 and Euro 198 million of
Medium Term Note for a period of seven years to 14 May 2014. Emerald Assets fully repaid the Euro 144 million
and Euro 165 million of Medium Term Note in August 2009 and March 2010 respectively.
140 Ascendas real estate investment trust