Eng - IOI Group

Notes To The Financial Statements cont’d34. LONG TERM BORROWINGS cont’d34.4 USD500 Million 5.25% Guaranteed Notes due 2015 (“Guaranteed Notes”)On 16 March 2005, the Company’s wholly-owned subsidiary, IOI Ventures (L) Berhad, a company incorporated in theFederal Territory of Labuan under the Offshore Companies Act, 1990, issued 10-year USD500 million Guaranteed Notes atan issue price of 99.294% (the “Guaranteed Notes”). The Guaranteed Notes are listed on the Singapore Exchange SecuritiesTrading Limited and the Labuan International Financial Exchange. The Guaranteed Notes carry an interest rate of 5.25% perannum payable semi-annually in arrears on 16 March and 16 September commencing 16 September 2005 and will matureon 16 September 2015. The Guaranteed Notes are unconditionally and irrevocably guaranteed by the Company.At initial recognition, the Guaranteed Notes were recognised in the Group balance sheets as follows:GroupRM’000Principal amount 1,900,000Discount on issue price (13,414)Net proceeds received 1,886,586The movement of the Guaranteed Notes during the financial year is as follows:Group2007 2006RM’000 RM’000At beginning of financial year 1,825,854 1,886,892Foreign currency translation differences (109,582) (62,086)Interest expense 1,051 1,048At end of financial year 1,717,323 1,825,85435. OTHER LONG TERM LIABILITIESGroupCompany2007 2006 2007 2006RM’000 RM’000 RM’000 RM’000Retirement benefits (Note 35.1) 40,121 40,919 1,021 1,108Club membership deposits 13,601 14,904 - -53,722 55,823 1,021 1,108IOI Corporation BerhadANNUAL REPORT 2007 206