ANNUAL%20REPORT%202015%20eng
ANNUAL%20REPORT%202015%20eng
ANNUAL%20REPORT%202015%20eng
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Notes to Consolidated Financial Statements<br />
26 SENIOR NOTES (Continued)<br />
The senior notes have been accounted for as a hybrid financial instrument containing both a derivative<br />
component and a liability component.<br />
The derivative component was initially recognised at its fair value of USD4,920,000, and the attributable<br />
transaction cost of USD107,000 was charged to profit or loss for the year ended 31 December 2012. The<br />
fair value of the derivative component as at 31 December 2015 was nil (2014: nil) which was presented as<br />
derivative financial instruments.<br />
The liability component was initially recognised at amortised cost of USD591,707,000, after taking into<br />
account attributable transaction costs of USD13,213,000.<br />
Fair value of the derivative component was valued by the directors with the reference to a valuation report<br />
issued by an independent business valuer based on the Binomial model.<br />
The Group is seeking a potential restructuring of the US$600,000,000 8.875% senior notes. The Group<br />
has appointed restructuring advisers to assist with negotiations with the holders of the senior notes and to<br />
achieve the debt restructuring in respect of the senior notes. Further details are set out in Note 2(b).<br />
27 EQUITY-SETTLED SHARE-BASED PAYMENT TRANSACTIONS<br />
The Company has a share option scheme (“Share Option Scheme”) which was adopted on 17 September<br />
2010 whereby the board of directors of the Group are authorised, at their discretion, invites eligible<br />
participants to receive options to subscribe for shares subject to the terms and conditions stipulated therein<br />
as incentives or rewards for their contributions to the Group.<br />
Under the Share Option Scheme, the Company may grant options to employees and directors, suppliers,<br />
customers and professional advisers of the Group to subscribe for shares of the Company. The exercise<br />
price of the options is determined by the board of directors of the Company at the time of grant, and shall<br />
be the highest of the nominal value of the shares, the closing price of the shares at the date of grant and the<br />
average closing price of the shares for the five business days immediately preceding the date of grant. The<br />
Share Option Scheme remains in force for a period of 10 years commencing on its adoption date and will<br />
expire on 12 October 2020.<br />
Annual Report 2015<br />
175
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