Mandarin Oriental International Limited - Mandarin Oriental Hotel ...

16 Borrowings continued
2005
Weighted
Fixed rate borrowings
Weighted
average average Floating rate
interest rates period borrowings Total
% Years US$m US$m US$m
Euro 5.9 2.7 13.8 – 13.8
Hong Kong Dollar 4.3 3.2 147.0 78.3 225.3
Swiss Franc 3.3 26.0 1.9 20.8 22.7
United Kingdom Sterling 5.9 0.3 29.8 73.7 103.5
United States Dollar 5.1 4.7 51.7 52.7 104.4
Japanese Yen 0.3 – – 10.2 10.2
244.2 235.7 479.9
2004
Euro 5.9 3.7 16.7 – 16.7
Hong Kong Dollar 2.9 4.2 146.6 84.2 230.8
Swiss Franc 3.0 27.0 2.3 25.6 27.9
United Kingdom Sterling 6.1 1.3 33.2 88.1 121.3
United States Dollar 7.1 12.4 77.1 109.0 186.1
275.9 306.9 582.8
Borrowings of US$362.1 million (2004: US$485.1 million) are secured against the fixed assets of certain
subsidiaries.The book value of these fixed assets as at 31st December 2005 was US$716.0 million
(2004: US$847.4 million).
The weighted average interest rates and period are stated after taking account of hedging transactions (refer
note 27).
a) Convertible bonds
The 6.75% convertible bonds of the Company were converted into ordinary shares in accordance with their terms
resulting in the issue of a total of 113,062,580 ordinary shares of the Company.
The convertible bonds were recognized in the consolidated balance sheet as follows:
2005 2004
US$m US$m
At 1st January 75.3 74.1
Interest expense (refer note 3) – 6.5
Interest paid – (5.1)
Conversion of convertible bonds (75.3) (0.2)
Liability component at 31st December – 75.3
Interest on the bonds were calculated on the effective yield basis by applying the coupon interest rate of 8.25% for
an equivalent non-convertible bond to the liability component of the convertible bonds.
ANNUAL REPORT 2005 57