NOTES TO THE FINANCIAL STATEMENTS
FOR THE FInAncIAL yEAR EnDED 30 JunE 2016
21
BANK BORROWINGS (CONT’D)
Loan I
With effect from 7 October 2015, Loan I is bearing interest at:
1st year: prevailing Enterprise Financing Rate (“EFR”) less 3.6%
2nd year: EFR less 3.3%
3rd year: EFR less 2.5%
4th year and thereafter: prevailing EFR
Loan I is secured by a first mortgage legal mortgage over the Group’s leasehold property (note 10) and corporate
guarantee from the Company. The loan is repayable in 240 monthly installments commencing Nov 2013.
Loan II
Loan II is bearing interest at:
1st-2nd periods: fixed at 1.78%
3rd periods: EFR less 2.75%
4th periods and thereafter: prevailing 3 month SIBOR plus 3.00%
Loan II is secured by legal mortgage over Group’s leasehold properties (note 10) and corporate guarantee from
a subsidiary and the Company, and charge on fixed deposit. The loan is repayable in 60 monthly installments
commencing July 2015.
Loan III
Loan III is bearing interest at:
1st – 4th periods: prevailing 3 month SIBOR plus 1.28%
5th – 8th periods: prevailing 3 month SIBOR plus 1.68%
9th period and thereafter: prevailing 3 month SIBOR plus 3.00%
Loan III is secured by a legal mortgage over Group’s leasehold property (note 10), corporate guarantee from the
Company, charge of fixed deposits and cash in current account.
The term loan is callable term loan and therefore the term loan is classified under current liabilities. The loan is
repayable in 120 monthly installments commencing June 2012.
Loan IV
The revolving loan is secured by a corporate guarantee by a subsidiary and is repayable on demand. Interest is
charged at 2.5% per annum above bank’s cost of fund. During the financial year, the interest rate ranged from
4.30% to 4.40% per annum.
98
ISOTEAM LTD.
ANNUAL REPORT 2016
