Asian Plantations Limited Final Results & Notice -14-

The foreign currency translation reserve is used to record exchange differences arising from the translation of the financial statements of companies in the Group whose functional currencies are different from that of the Group's presentation currency.

 
                                            2013     2012 
                                           USD'000  USD'000 
 
At 1 January                                 1,736    (717) 
Foreign currency translation adjustments   (3,949)    2,453 
 
 
At 31 December                             (2,213)    1,736 
 
 

Share-based payment transaction reserve

The share-based payment transaction reserve is used to recognise the value of equity-settled share-based payment transaction provided to directors, employees and consultants as part of their remuneration or compensation for services rendered. Refer Note 29 for further details of these plans.

 
                                      2013     2012 
                                     USD'000  USD'000 
 
At 1 January                          10,604    9,543 
Expense recognised during the year       204    1,128 
Pursuant to issuance of ordinary 
 shares (Note 23)                      (826)     (67) 
 
 
At 31 December                         9,982   10,604 
 
 
   25.        Loans and borrowings 
 
                                         2013     2012 
                                        USD'000  USD'000 
 
Bank overdraft                            2,477      613 
Short term revolving credit                   -    1,962 
Bank Guaranteed Medium Term Notes 
 Programme                               76,607   31,954 
Term loans                               52,741   84,821 
 
 
                                        131,825  119,350 
Add: Obligations under finance leases 
 (Note 30(c))                             2,117    2,123 
 
 
                                        133,942  121,473 
 
 
 
 
                                           2013     2012 
                               Maturity   USD'000  USD'000 
 
Current 
Bank overdraft BLR* + 1.0% 
 p.a.                          On demand    2,477      613 
Short term revolving credit 
 COF** + 2.5% p.a.             On demand        -    1,962 
Term loan BLR - 1.5%                2014        5        5 
Term loans BLR + 1.0% p.a.          2014      965    2,292 
Term loans COF + 2.0% p.a.          2014      762        - 
Term loans COF + 2.5% p.a.          2014        -      964 
Bridging loan COF + 1.75% 
 p.a.                               2014        -   12,426 
Obligations under finance 
 leases 
 (Note 30(c))                       2014      610      502 
 
 
                                            4,819   18,764 
 
 
Non-current 
                                  2015 - 
Term loan BLR - 1.5% p.a.           2031      159      177 
                                  2015 - 
Term loans BLR + 1.0% p.a.          2020   28,036   46,947 
                                  2015 - 
Term loans COF + 2.0% p.a.          2020   22,814   12,118 
                                  2015 - 
Term loans COF + 2.5% p.a.          2019        -    9,892 
Bank Guaranteed Medium Term       2017 - 
 Notes Programme                    2020   76,607   31,954 
Obligations under finance 
 leases                           2015 - 
 (Note 30(c))                       2017    1,507    1,621 
 
 
                                          129,123  102,709 
 
 
Total loans and borrowings                133,942  121,473 
 
 
 

* BLR refers to Base Lending Rate

** COF refers to Cost of Fund

Details of the loans and borrowings, which are all denominated in RM, are as follows:

Obligations under finance leases

These obligations are secured by a charge over the leased assets (Note 15). Interest rates of the leases range from 4.13% to 6.23% (2012: 4.68% to 6.23%) p.a. Future minimum lease payments under finance leases together with the present value of the net minimum lease payments are disclosed Note 30(c).

Short-term revolving credit COF + 2.5% p.a.

During the current financial year, the short-term revolving credit, which was repayable on demand with a six months rollover period, was fully settled through the MTN Programme as elaborated below. It was secured over a leasehold land of the Group in which the rights to use the land as disclosed in Note 17 was prepaid. This revolving credit included a financial covenant which requires the subsidiary company to maintain a gearing ratio not exceeding 70%.

Bank overdrafts BLR + 1.0% p.a.

There are three (2012: two) bank overdrafts facilities which bear interest of BLR + 1% p.a. and with a total combined amount of USD4.0 million (2012: USD2.6 million) are currently available for use by the Group. The bank overdrafts are secured over leasehold lands of the Group in which it has prepaid the rights to use the lands as disclosed in Note 17. This bank overdraft includes a financial covenant which requires the subsidiary company to maintain a gearing ratio not exceeding 70%.

Term loan BLR - 1.5% p.a.

This term loan which is obtained for the purchase of a building is secured over the said building as disclosed in Note 15 and is repayable over a period of 22 years.

Term loans BLR + 1.0% p.a.

There are currently two (2012: three) term loans which bear interest of BLR + 1% p.a. obtained for the purpose of acquisition of subsidiaries and land use rights. During the current financial year, the MTN Programme as further elaborated below has wholly re-financed a term loan amounting to USD18.0 million that was due to commence repayment this year. The remaining two term loans of USD8.0 million and USD23.4 million will commence repayment in Year 2014 and Year 2015, respectively.

All term loans are repayable over a period of six years and are secured over certain leasehold land of the Group in which the Group has prepaid the rights to use the land as disclosed in Note 17 and a corporate guarantee provided by the Company. The term loan of USD23.4 million is further secured by a fixed deposit of USD801,000 (2012: USD835,000) as disclosed in Note 22. These loans include financial covenants which require the subsidiary company to maintain a gearing ratio not exceeding 70%.

Term loan COF + 2.0% p.a

There are three (2012: two) term loans which bear interest of COF + 2.0% p.a. obtained for the purpose of oil palm development activities. The total facility amount available from the term loans is USD39.9 million (2012: USD27.0 million), and is to be drawn down in two to four tranches. As at the reporting date, the Group has only drawn down USD23.8 million (2012: USD12.0 million), and the balance is available for further draw down until 31 December 2016. The term loans will commence repayment in Year 2014, Year 2015 and Year 2016, respectively, for a period of six years.

The term loans are secured over leasehold land of the Group in which the Group has prepaid the rights to use the land as disclosed in Note 17 and a corporate guarantee provided by the Company. These loans include a financial covenant which requires the subsidiary company to maintain a gearing ratio not exceeding 70%.

Term loans COF + 2.5% p.a

There were two term loans which bear interest of COF + 2.5% p.a. obtained for the purpose of partial financing of acquisition of a subsidiary and land use rights, and oil palm development activities. The total amount of loan obtained for these term loans amounted to USD11 million and the Group had fully drawn down this amount in previous years. Both term loans which were due to commence repayment in the current year were wholly re-financed through the MTN Programme as elaborated below.

The term loans were secured over a leasehold land of the Group in which the Group has prepaid the rights to use the land as disclosed in Note 17. These loans include financial covenants which require the subsidiary company to maintain a gearing ratio not exceeding 70%.

Bank Guaranteed Medium Term Notes Programme

The MTN Programme of up to RM255 million (approximately USD85 million) in nominal value is guaranteed by Malayan Banking Berhad ("MBB") for the full principal redemption of up to RM255 million and one semi-annual coupon payment. The proceeds from this programme is utilised towards the construction of the Group's first vertical steriliser oil palm mill, refinancing of the Group's certain loans and borrowings that are due for repayment as mentioned in the preceding paragraphs, and to also finance the plantation development expenditure including working capital requirements for BJ.

As at 31 December 2013, the Group has fully drawn down the second tranche of the MTN Programme totalling RM155 million (USD52 million). The first tranche of USD100 million (USD33 million) was drawn down in the previous year.

Of the first tranche of the MTN Programme, RM35 million (USD12 million) bears a coupon rate of 4.35% p.a., while the balance of RM65 million (USD21 million) bears a coupon rate of 4.45% p.a. The coupon rate for the second tranche of the MTN Programme ranges from 3.9% p.a. to 4.3% p.a. Tenure of the MTN Programme is up to 10 years from the date of the first issuance and repayment is to commence 5 years from the date of first issue.

The MTN Programme is secured over all the leasehold land of the Group in which the Group has prepaid rights to use the land as disclosed in Note 17 and a corporate guarantee provided by the Company.

Bank guarantee by MBB on the MTN Programme includes financial covenants which require the Group on a consolidated level, to maintain the following:

(a) Maximum Debt to Equity ratio of 2.25:1

(b) Minimum Debt Service Cover Ratio of 1.50:1

(c) Minimum Equity of USD92 million (or RM276 million) as at 31 December 2013

In December 2013, the Group secured a temporary relaxation from MBB to allow the Group up to 31 December 2014 to comply with the abovementioned loan covenants.

Bridging Loan COF + 1.75% p.a.