5 per year without the requirement to repay the loan principal for the first four years, followed by bullet repayments
at the end of year four (15 per cent) and year five (85 per cent).
Furthermore, the Company's ability to meet the bullet repayments
on the IMTN and other borrowings hinges on the disposal of the office tower.
The new loans would be structured with bullet repayments
-- meaning the main amount would not be due until the end of the term -- and interest rates would also be low so as not to burden the group's cashflow with interest payments, the source added.
for refinancing prior to the bullet repayments
in March 2011.
All of KLCC REIT's existing financings will be refinanced with the proposed sukuk, which is expected to result in a more spread out debt maturity profile with smaller bullet repayments
Based on its 12- to 18-month forward-looking liquidity analysis, Moody's highlights that GCC issuers' prospects in 2012 will be determined by factors such as their ability to roll over short-term maturities (less than one year), address upcoming bullet repayments
and improve their operating performance.
It also recognises the uncertainties related to large restructurings, particularly in the context of non-commercial interest rates, bullet repayments
or as-yet-untested corporate cash flows.