Annual Report 2007 - The Link REIT

Annual Report 2007
The Link Real Estate Investment Trust
105
Notes to the Consolidated Financial Statements
18 Interest bearing liabilities (continued)
Notes:
(a)
(b)
(c)
(d)
On 4 August 2006, a subsidiary of the Group, The Link Finance (Cayman) 2006 Limited, issued three guaranteed notes (the “Notes”) in the
aggregate amount of HK$3.6 billion. The Notes, listed on The Stock Exchange of Hong Kong Limited and guaranteed by two subsidiaries
of the Group, The Link Holdings Limited and The Link Properties Limited, are divided into three tranches, HK$1.4 billion 5.12% guaranteed
notes due in 2009, HK$1.4 billion 5.00% guaranteed notes due in 2008 and HK$0.8 billionfloating rate guaranteed notes due in 2008.
On 4 August 2006, the Group arranged an unsecured HK$5 billionfi ve-yearfloating rate syndicated term/revolving bank loan facility,
guaranteed by two subsidiaries of the Group, The Link Holdings Limited and The Link Properties Limited. The undrawn portion of the facility
amounted to HK$0.4 billion as at 31 March 2007.
On 27 November 2006, The Link Properties Limited entered into a three-yearfloating rate mortgage loan facility of HK$4 billion (the
“Mortgage Loan Facility”) with The Link Finance Limited. Certain of the investment properties were pledged for this purpose, of which the
carrying value of the pledged properties as at 31 March 2007 amounted to approximately HK$4 billion. The Mortgage Loan Facility was then
sold for a consideration of HK$4 billion to The Hong Kong Mortgage Corporation Limited. The Mortgage Loan Facility is guaranteed by The
Link Holdings Limited and HSBC Institutional Trust Services (Asia) Limited, the trustee of The Link REIT.
The effective interest rate of the interest bearing liabilities at the balance sheet date was 4.66% (2006: 4.74%). The carrying amounts of the
interest bearing liabilities approximate their fair values.
19 Deferred tax liabilities
Deferred taxation is calculated in full on temporary differences under the liability method using a principal taxation rate of
17.5% (2006: 17.5%).
Analysis of net deferred tax liabilities:
2007 2006
HK$’M
HK$’M
Deferred tax assets (21) (173)
Deferred tax liabilities 5,123 4,360
5,102 4,187