Annual Report 2012 - IOI Group

34. BORROWINGS (Continued)34.3 USD600 Million Zero Coupon Guaranteed Exchangeable Bonds due 2013 (“3 rd Exchangeable Bonds”) (Continued)In the financial year ended 30 June 2010, the initial exchange price of RM11.00 per ordinary share of RM0.10 was adjustedto RM10.73 per ordinary share of RM0.10 following the completion of the Renounceable Rights Issue.The movements of the 3 rd Exchangeable Bonds during the financial year are as follows:Group2012RM’0002011RM’000At beginning of financial year 12,847 1,547,736Fair value adjustment (20) 18,538Foreign currency translation differences 710 (87,147)Redemption of USD440,770,000 nominal value of the 3 rd Exchangeable Bonds – (1,397,158)Repurchase of USD21,650,000 nominal value of the 3 rd Exchangeable Bonds – (69,122)At end of financial year 13,537 12,84734.4 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 the FederalTerritory of Labuan under the Offshore Companies Act, 1990, issued a 10-year USD500 million Guaranteed Notes at an issueprice of 99.294% (the “Guaranteed Notes”). The Guaranteed Notes are listed on the Singapore Exchange Securities TradingLimited and the Labuan International Financial Exchange. The Guaranteed Notes carry an interest rate of 5.25% per annumpayable semi-annually in arrears on 16 March and 16 September commencing 16 March 2005 and will mature on 16 March2015. The Guaranteed Notes are unconditionally and irrevocably guaranteed by the Company.At initial recognition, the Guaranteed Notes were recognised in the Group statement of financial position as follows:GroupRM’000Principal amount 1,900,000Discount on issue price (13,414)Net proceeds received 1,886,586The movements of the Guaranteed Notes during the financial year are as follows:Group2012RM’0002011RM’000At beginning of financial year 1,508,884 1,612,136Foreign currency translation differences 83,777 (104,391)Interest expense 1,191 1,139At end of financial year 1,593,852 1,508,884Annual Report 2012IOI CORPORATION BERHAD 201