Asian Development Bank Loan
STATEMENT 7
STATEMENT OF PUBLIC DEBT AND SINKING FUND AS AT 31 MARCH 1977
Authority
Loans (Asian Development Bank) Ordinance, Chapter 271 of the Laws of Hong Kong
Amount Outstanding
US$ 1,692,094.92 ¥2,678,320,111.00 Lux. Fr. 37,782,756.00 A.Sh. 39,581,807.67
K.D. 111,047.469 C.$ 174,954.19 S.A.R. 176,300.06 D.FL. 5,181,017.57 H.K.$ 82,171.07 D.M. 3,253,200.96 S.Fr. 330,487.95
Sinking Fund at Market Value on 31.3.77
Remarks
In accordance with the first schedule to the Ordinance the Government may borrow from the Asian Development Bank an amount in various currencies equivalent to US$21,500,000 for the purpose of a project involving the construction of seawater desalting works to be located near Castle Peak in the New Territories. The terms of the loan provide for a commit- ment charge of 1% per annum on the unwithdrawn amount of the Loan and interest of 74% per annum on the amount of the loan withdrawn and outstanding from time to time. These charges are payable semi-annually on 1 January and 1 July. The loan is repayable by twenty equal half-yearly instalments commencing 1 January 1976. The amount outstanding at 31 March 1977 is equivalent to HK$87,893,798.66 arrived at as undernoted:
Currency
U.S. Dollar
Japanese Yen
Luxembourg Franc (Financial)
Austrian Schilling
Saudi Arabian Riyal
Kuwaiti Dinar
Canadian Dollar
Dutch Florin
Hong Kong Dollar
Deutsche Mark
Swiss Franc
Amount
US$ 1,692,094.92 2,678,320,111.00
Lux. Fr. 37,782,756.00 A.Sh. 39,581,807.67
K.D. 111,047.469
C$ 174,954.19 S.A.R. 176,300.06 D.FL. 5,181,017.57 H.K.$ 82,171.07 D.M. 3,253,200.96 S.Fr. 330,487.95
Exchange Rates
US$1=$4.64 ¥1,000-$16.7625 Lux.Fr. 100=$12.7 A.Sh. 100-$27.475 K.D. 1-$15.775 C.$1-$4.41175 S.A.R.1-$1.31275 D.FL.100-$187.025
D.M. 100-$194.925 S.Fr. 100-$183.15
Hong Kong Dollars equivalent
7,851,320.43 44,895,340.86
4,798,410.01
10,875,101.66
1,751,773.82
771,854.15
231,437.90
82,171.07
9,689,798.11
6,341,301.97 605,288.68
HK$87,893,798.66
Hong Kong Government 34% (Rehabilitation) Loan
Hong Kong (Rehabilitation) Loan Ordinance, Chapter 76 of the Laws of Hong Kong
107
Hong Kong Government 64% Bonds, 1980
Loans (Government Bonds) Ordinance, Chapter 64 of the Laws of Hong Kong
Lloyds Bank International Limited Loan
HK$45,889,000.00 HK$35,686,594.12
HK$250,000,000.00
Loans Ordinance, Chapter 61 of the Laws of Hong Kong
US$2,527,800.00
The Ordinance provides for the raising of $150 million of which $50 million has so far been raised. The loan is repayable not earlier than 1973 and not later than 1978. Provision is made for contributions to a Sinking Fund at not less than 1% per annum. In January 1971 the Crown Agents reported that the value of the Sinking Fund was then accumulating at a rate which would enable the loan to be redeemed without any further contributions. And on 18 May 1971 the Secretary of State for Foreign and Commonwealth Affairs gave his approval to the suspension of payment of contributions to the Sinking Fund subject to proviso (b) of Section 7(5) of the Ordinance. Contributions were suspended for the financial years 1971/72, 1972/73, 1973/74 and 1974/75 but were recommenced during the year 1975/76. Interest is payable half-yearly on the 15 January and 15 July each year. Bonds to the value of $4,111,000 have been purchased by Government for can- cellation.
A Resolution by the Legislative Council dated 13 August 1975 under Section 3 of the Ordinance provides for the issue of these bonds which are repayable at par on 24 November 1980. Interest is payable half-yearly on 24 May and 24 November each year.
A Resolution of the Legislative Council dated 18 June 1975 under Section 3(1) of the Ordinance authorized this loan; it is repayable in five consecutive equal annual tranches commencing on 20 August 1976. Interest on the outstanding balance of the loan is payable semi-annually in arrears at various rates as undernoted:
Tranche No.
1
2
3
4
5
Rate of Interest
9 15/16% p.a.
10 % p.a.
10
p.a.
10%
p.a.
11% p.a.
Notes:
The first interest payment was made on 20 February 1976.
1. Under an agreement entered into on 2 October 1975 and authorized by Resolution of the legislative Council on 1 October 1975 under Section 3(1) of the Loans Ordinance, Chapter 61 a loan facility in the sum of US$60,000,000 has been
made available to Government by a Hong Kong & Shanghai Bank consortium for a period of five years commencing from 2 October 1975. There was no drawdown of this facility during the year ended 31 March 1977. The terms of the agreement provide for a commitment charge of 1% per annum on the unwithdrawn amount of the loan and interest of 14% per annum above the London Inter-bank offered rate (LIBOR) on the amount withdrawn for the period selected for 36 months from the date of acceptance on 2 October 1975 and 18% per annum above the LIBOR thereafter. The interest will be payable six monthly in arrears.
2. In accordance with the first schedule to the Loans (Asian Development Bank) Ordinance, Chapter 271 the Government may borrow from the Asian Development Bank an amount in various currencies equivalent to US$20,000,000 for
the purposes of a project which forms part of stage I of the sewerage and sewage treatment facilities for the Sha Tin New Town and involves the construction of (i) sewage treatment works; (ii) main pumping station; and (iii) laying of approximately 2,000 meters of twin 1,400 m.m. diameter rising mains. The terms of the loan provide for a commitment charge of % per annum on amounts of the loan (less amounts withdrawn from time to time), during successive periods commencing from 8 May 1976, as follows: during the first twelve-month period, on US$3,000,000; during the second twelve-month period, on US$9,000,000; during the third twelve-month period, on US$17,000,000; and thereafter, on the full amount of the loan and interest of 94% per annum on the amount of the loan withdrawn and outstanding from time to time. These charges are payable semi-annually on 1 March and 1 September. The loan is repayable by twenty half-yearly instalments commencing 1 March 1981. There was no withdrawal from the Loan Account during the year ended 31 March 1977.