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CapitaLand Limited
Annual Report 2015
Overview
Sustainability
Business
Review
Portfolio
Details
Corporate
Governance &
Transparency
Financials &
Additional
Information
Notes to the Financial Statements
36 Financial Guarantee Contracts
(continued)
(b) Undertakings by the Group and the Company:
(i)
A subsidiary of the Group has provided an indemnity for banker’s guarantee issuance on a several basis in
respect of a banker’s guarantee facilities amounting to $133.9 million (2014: $133.9 million) granted to an
associate. In 2014, the subsidiary had also provided several undertakings on cost overrun, security margin,
interest shortfall and a project completion undertaking on a joint and several basis, in respect of a term loan
amounting to $433.0 million amounted to this associate. The bank loan was fully repaid in 2015.
(ii) A subsidiary of the Group has provided an undertaking on security margin on a joint and several basis,
in respect of term loan and revolving loan facilities amounting to $1,618.0 million (2014: $1,618.0 million)
granted to a joint venture. As at 31 December 2015, the amount outstanding under the facilities was $1,618.0
million (2014: $1,618.0 million).
(iii) During the year, two subsidiaries of the Group provided project completion undertakings on a joint and several
basis, in respect of multi-currency term loan and revolving loan facilities amounting to $383.7 million granted
to an associate. In addition, the shares in this associate were pledged as part of the securities to secure the
credit facilities. As at 31 December 2015, the total amount outstanding under the facilities was $10.0 million.
(iv) During the year, two subsidiaries of the Group provided interest shortfall and loan repayment undertaking on a
proportionate and several basis, in respect of term loan and revolving loan facilities amounting to $320.0 million
granted to a joint venture. In addition, the shares in this joint venture were pledged as part of the securities
to secure the credit facilities. As at 31 December 2015, the total amount outstanding under the facilities was
$280.0 million.
(v) Certain subsidiaries of the Group in China, whose principal activities are the trading of development properties,
would in the ordinary course of business act as guarantors for the bank loans taken by the buyers to finance the
purchase of residential properties developed by these subsidiaries. As at 31 December 2015, the outstanding
notional amount of the guarantees amounted to $512.2 million (2014: $178.8 million).
