Asia-Pacific Strategic Investments Limited - Annual Report 2021

Notes to the Financial Statements For the financial year ended 30 June 2021

23

Borrowings (continued)

(a)

Security granted (continued)

(iii) The Group was granted a term loan facility of RMB30.0 million (equivalent to S$6.25 million) for working capital purposes from a licensed bank in the PRC. The term loan bears an interest of 7.5% per annum and is secured against:

a)

the Hotel Collateral; and

b) a personal guarantee by Dato Choo of up to RMB55.0 million (equivalent to S$11.45 million).

The term loan was fully drawndown in December 2020 and is repayable as below:

Amount RMB’000

Equivalent to S$’000

Repayment date 21 December 2021 21 December 2022 21 December 2023 21 December 2024 25 December 2025

1,200 1,800 3,000

250 375 625

12,000 12,000

2,498 2,498

(b)

Fair value of non-current borrowings

Group

Company

2021

2021

2020

2020

S$’000

S$’000

S$’000

S$’000

4,092 6,238

4,092

Bank borrowings – Singapore

5,816

5,816

Bank borrowings – PRC

-

-

-

The fair value above is determined from the cash flow analysis, discounted at market borrowing rate of an equivalent instrument at the balance sheet date which the directors expect to be available to the Group as follows:

Group

Company

2021

2021

2020

2020

4.88% 4.35%

4.88%

Bank borrowings – Singapore

4.88%

4.88%

Bank borrowings – PRC

-

-

-

The fair value is within Level 2 of the fair value hierarchy.

ANNUAL REPORT 2021

99