158
AirAsia X Berhad • Annual Report 2014
NOTES TO THE FINANCIAL STATEMENTS
AS AT 31 DECEMBER 2014
25 BORROWINGS (CONTINUED)
The carrying amounts and fair values of the fixed rate non-current borrowings are as follows:
Group and Company
2014
2013
Carrying
amount
RM’000
Fair
value
RM’000
Carrying
amount
RM’000
Fair
value
RM’000
Term loans
1,066,051
1,006,804
1,358,298
1,320,583
Hire purchase
49
53
66
70
1,066,100
1,006,857
1,358,364
1,320,653
The fair values of borrowings classified as current liabilities, equal their carrying amounts, as the impact of discounting is not significant.
The fair values of the non-current fixed rate borrowings are based on cash flows discounted using borrowing rates that are reflective of the Group and Company’s credit risk at
the balance sheet date, at 2.80% to 4.89% (2013: 2.80% to 3.98%) per annum. The fair values of non-current borrowings are within level 2 of the fair value hierarchy.
Total borrowings include secured liabilities of RM1.5 billion (2013: RM2.0 billion).
Revolving credit facilities
The revolving credit facility of RM276,026,000 as at 31 December 2014 (2013: RM400,871,000) is to finance pre-delivery payments (“PDPs”) in respect of the Group’s and
Company’s firm order of Airbus A330-300 aircraft, with an option to acquire additional Airbus A330-300 aircraft. The facility becomes repayable upon delivery of the relevant
aircraft and carries interest ranging from 3.2% to 3.25% (2013: 3.2% to 3.25%) per annum above the bank’s USD cost of funds.
The revolving credit facility of RM40,000,000 as at 31 December 2014 (2013: RM40,000,000) is to finance the Group’s and Company’s corporate working capital requirements.
The tenure of revolving credit facility is up to 5 years. This facility carries an interest at cost of funds plus 3% (2013: 3%) per annum.
Term loans
The term loans are for the purchase of new Airbus A330-300 aircraft. The repayment of the term loans is on a quarterly basis over 10 to 12 years, with equal principal
instalments, at fixed interest rates of between 2.82% to 5.45% (2013: 2.82% and 7.03%) per annum. The term loans are secured by the following:
(a)
Assignment of rights under contract with Airbus over each aircraft;
(b)
Assignment of insurance of each aircraft; and
(c)
Assignment of airframe and engine warranties of each aircraft.
Commodity structured trade finance
The commodity structured trade finance of RM35,000,000 as at 31 December 2014 is to finance the Group’s and Company’s prepayment for the delivery of jet fuel by Petronas
Dagangan Berhad. This facility is repayable within 1 month from the drawdown date and carries an interest at cost of funds plus 2% per annum.
