NOTES TO
FINANCIAL STATEMENTS
December 31, 2015
116
CITIC ENVIROTECH LTD.
Annual Report
2015
23 CONVERTIBLE BONDS (cont’d)
The net proceeds received from the issue of the bonds have been split between the liability element
and an equity component, representing the fair value of the embedded option to convert the liability
into equity of the Group, as follows:
Group and Company
December
31,
March
31,
2015
2015
$’000
$’000
Nominal value of bonds issued
–
54,868
Less: Transaction costs
–
(3,152)
Net value of bonds issued
–
51,716
Equity component at date of issue
–
(8,707)
Liability component at date of issue
–
43,009
Exchange realignment
–
3,658
Cumulative interest accrued
–
16,754
Total
–
63,421
Less: Interest payables included in accruals (Note 21)
–
(368)
Less: Coupon paid to bondholders
–
(4,271)
Liability component at end of year
–
58,782
The interest accrued is calculated by applying an effective interest rate of 9.9% (March 31, 2015 :
9.9%) to the liability component.
During the year, the remaining US$44,000,000 (March 31, 2015 : US$69,800,000) of convertible
bonds have been converted to ordinary shares of the Company.
24 MEDIUM TERM NOTES
Group and Company
December
31,
March
31,
2015
2015
$’000
$’000
At beginning of the year
98,228
97,016
Issued during the year, net of issuance cost
222,048
–
Early redemption during the year
(1,010)
–
Amortisation of issuance cost charge to profit or loss (Note 32)
660
1,212
At end of the year
319,926
98,228
