18. BORROWINGS (continued) Measurement of fair value (continued) (b) Offshore Facility (continued) v) A debenture over all the assets of the Trustee (in its capacity as trustee of ECW) relating to and/or in connection with the Properties, and debentures over all of the assets of each of the Singapore Holding Companies and ECWT. The blended all-in interest rate for the quarter and 12 months ended 31 December 2024 was 10.7% (2023: 8.5%) and 9.6% (2023: 7.5%) respectively. The blended all-in running interest rate for the quarter and 12 months ended 31 December 2024 was 10.7% (2023: 7.4%) and 9.2% (2023: 6.5%) respectively. As at 31 December 2024, S$246,800,000 and US$75,500,000 (S$102,100,000) of the above facility were drawn down and 0% (2023: 53%) of the interest rate risk of the Offshore Facility was hedged using floating to fixed interest rate swaps and cross currency swaps. As announced by the Manager on 11 June 2024, the Offshore Facility Agent has on 10 June 2024 issued a Pre-enforcement Notice to the ECW Group, requiring it to fulfil certain conditions and milestones, among others, that the Group shall divest assets in such amount sufficient to repay the liabilities under the Offshore Facility Agreement. Refer to Note 2 for more details. At the date of this announcement, the Group has not received any notice of enforcement action. The Manager is actively in negotiations with the lenders of the Offshore Facility on refinancing. As announced by the Manager on 26 October 2024, in relation to the application filed by Franklin Medici Alternative Investment VCC (for itself and for the purpose of FM REAL ESTATE FUND) and litigation against FIPL and Mr Zhang Guobiao: i) an enforcement order (the “Enforcement Order”) was issued in the General Division of the High Court of the Republic of Singapore on 12 August 2024 authorising the Sheriff to seize and sell certain assets belonging to Mr Zhang Guobiao (“Relevant Property”); and ii) a Notice of Seizure (the “Notice of Seizure”) was issued by the Sheriff to, among others, Singapore Land Authority and Mr Zhang Guobiao on 2 September 2024, directing them not to deal with or dispose of the Relevant Property, unless the Court otherwise orders. The Enforcement Order and Notice of Seizure constitute an event of default pursuant to the Offshore Facilities. This in turn triggers a cross-default under ECW’s existing Onshore facilities. The lenders under the Facilities may, among others, accelerate the Facilities if an event of default is continuing. The Manager has updated the lenders under the Facilities in respect of the Enforcement Order and Notice of Seizure immediately upon receipt of the above-mentioned updates from the Sponsor, and has not received any indication from them that they intend to accelerate the Facilities as a result of the above-mentioned circumstances as at the date of this announcement. Mr. Zhang Guobiao, the chairman and controlling shareholder of the Sponsor, has provided personal guarantees in respect of the 2023 Facilities as disclosed previously. (c) Revolving credit facilities As at 31 December 2024, all revolving credit facilities have been fully repaid using the cash collaterals for the SBLC. The interest rates 4.93% to 11.75% (2023: 4.19% to 5.55%) for 12 months ended 31 December 2024. EC WORLD REIT 106 NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2024
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