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INDOFOOD AGRI RESOURCES LTD
ANNUAL REPORT 2015
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For the financial year ended 31 December 2015
26.
INTEREST-BEARING LOANS AND BORROWINGS (CONT’D)
Current loans and borrowings
Effective Interest Rates
The short-term loans denominated in Rupiah bear effective interest rates that are ranging from 8.50% to 10.75%
(2014: 8.00% to 11.15%) per annum for the year ended 31 December 2015. The credit facilities denominated in US Dollar bear
interest at annual rates ranging from 1.64% to 2.11% (2014: 1.66% to 5.00%) per annum.
Covenants
The above-mentioned credit agreements obtained by the subsidiaries are subject to several negative covenants, include
among others, to merge or consolidate with other entity; to change the Constitution; to reduce their share capital;
making new investments and capital expenditures in excess of certain thresholds; to sell or dispose off significant
portion of their assets used in the operations; as well as granting/obtaining credit facilities to/from other parties which
would affect their ability to perform their obligation under the related credit agreements. The subsidiaries are also
required to maintain certain financial ratios.
Compliance with Loan Covenants
As at 31 December 2015 and 2014, the Group has complied with all of the covenants of the short-term loans as disclosed
in this Note or obtained the necessary waivers as required.
Non-current loans and borrowings
Effective Interest Rates
The long-term loans denominated in US Dollar and Rupiah bear effective interest rates that are ranging from 1.57%
to 3.41% per annum and from 8.03% to 11.15% per annum, respectively, for the year ended 31 December 2015
(2014: 1.98% to 3.50% per annum and from 8.53% to 11.15% per annum).
Covenants
The above-mentioned credit agreements obtained by the Group provides for several negative covenants for the
subsidiaries, include among others, to pledge their assets to other parties (except for the existing assets already
pledged as at the credit agreement date); to lend money to unaffiliated parties; to merge or consolidate with other entity
unless the subsidiaries will be the surviving legal entity; to change the current course of their businesses; to reduce
their share capital; making new investments and capital expenditures in excess of certain threshold; to sell or dispose
off significant portion of their assets used in the operations in excess of certain thresholds; to change their legal status;
to pay dividends exceeding 50% of the previous year net profit; as well as to obtain credit facilities from other parties
which would affect their ability to perform their obligation under the related credit agreements. The subsidiaries are
also required to maintain certain financial ratios.
Compliance with Loan Covenants
As of 31 December 2015 and 2014, the Group has complied with all of the covenants of the long-term loans as disclosed
in this Note or obtained the necessary waivers as required.
S$500 million Euro Medium Term Note ( the “MTN”)
In September 2013, the Company established a 5-year S$500 million Euro MTN Programme. Under the Programme,
the Company may from time to time issue notes (the “Notes”) in series or tranches. Each series or tranche of Notes
may be issued in any currency, in various amounts and tenors, and may bear interest at a fixed, floating, variable or
hybrid rates (as applicable), as agreed between the Company and the relevant dealer(s).
As at 31 December 2015 and 2014, the Company has not issued any Notes under the programme.
