Annual Report 2019

FAR EAST CONSORTIUM INTERNATIONAL LIMITED 236 For the year ended 31 March 2019 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 35. NOTES AND BONDS (continued) 2018 Bonds On 3 April 2013, Dorsett issued bonds with aggregate principal amount of RMB850,000,000 (equivalent to HK$1,062,500,000) at the issue price of 100% of the principal amount with maturity date on 3 April 2018 (the “2018 Bonds”) to independent third parties. The 2018 Bonds bear interest at 6.17% per annum payable semi- annually. Dorsett partially repurchased a principal amount of RMB39,660,000 (equivalent to HK$49,972,000). In addition, the Company, through its subsidiary, purchased 2018 Bonds with the principal amount of RMB83,030,000 (equivalent to HK$101,712,000). As at 31 March 2018, the outstanding principal amount of 2018 Bonds was RMB727,310,000 (equivalent to HK$909,138,000). The 2018 Bonds were fully redempted upon maturity. The principal terms of 2023 Notes, 2021 Notes and 2018 Bonds: a) Other than during the closed period and subject to the terms of the paying agency agreement in respect of the 2023 Notes, 2021 Notes and 2018 Bonds, the bonds are transferable without restrictions. b) Unless previously redeemed or purchased and cancelled, the Company and Dorsett will redeem each 2023 Notes, 2021 Notes and 2018 Bonds at 100% at its principal amount together with unpaid accrued interest on the maturity date. c) At any time the Company and Dorsett may, having given not less than 15 nor more than 30 days’ notice to the noteholders or 30 nor more than 60 days’ notice to the bondholders in accordance with the terms and conditions of the 2023 Notes, 2021 Notes and 2018 Bonds (which notice shall be irrevocable) redeem all, and not some only, of the 2023 Notes, 2021 Notes and 2018 Bonds at their principal amount together with interest accrued to the date fixed for redemption on the redemption date as a result of any change in, or amendment to, the applicable tax laws or regulations of the Cayman Islands or Hong Kong. d) When a change of control occurs with respect to the Company and Dorsett, the noteholder of 2023 Notes, 2021 Notes and bondholder of 2018 Bonds will have the right at such holder’s option, to require the Company and Dorsett to redeem all or some only of that 2023 Notes and 2021 Notes at 100% and 2018 Bonds at 101% of their principal amount together with interest accrued to the date fixed for redemption. e) The 2023 Notes, 2021 Notes and 2018 Bonds will constitute direct, unsubordinated, unconditional and (subject to the terms and conditions of the 2023 Notes, 2021 Notes and 2018 Bonds) unsecured obligations of the Company and Dorsett and shall at all times rank pari passu and without any preference or priority among themselves. Details of the issue of the 2023 Notes, 2021 Notes and 2018 Bonds were disclosed in Company’s circular dated 7 November 2017, 25 August 2016 and Dorsett’s circular dated 25 March 2013, respectively.