Originally Posted by
Snoopy
We are told that Agria is being charged a 4.2% weighted average interest rate for its US and Chinese loans. A significant tranche of US domiciled loans mature between January 6th 2014 and April 21st 2014 and total US$25.8m (p57 FY2013 20F filing) . We must add to this a partially drawn trade facility in RMB, equivalent to a US dollar amount of $US2.6m that matures on 31st March 2014. Lastly there is a US bank loan of $US32m that matures on 29-05-2018. (I must say hats off to Lai for pulling that last one over the last year, a great dance move).
That gives an implied interest bill of $US2.53m.
Now we move onto the New Zealand based loans which I believe are effectively held by "Agria Asia".
The LIC loan has been repaid early. That just leaves the bank loan, originally taken out via "ANZ National" in New Zealand. This loan matures on 26th February 2014 and is for $NZ13.8m ($US10.7m). I shall assume the interest rate on this is somewhat in line with what PGW itself might be paying, around 7%. So this gives an implied interest bill of $US1.022m.
This gives a total annual interest bill for Agria, with PGW separated out, of $US3.57m.
Now running a check on my assumptions. Interest and finance expenses from the consolidated Agria revenue statement (p3 20F report) are declared as $US14.738m.
From the PGW FY2013 Annual Report p58, interest and finance expenses are $NZ6.316m. Multiply that by 0.8 and I get $US5.053m. So the underlying Agria standalone finance expenses are:
$US14.732m - $US5.053m = $US9.679m
That is quite a variation compared with my estimate of Agria's interest bill above. So I need to check out the reason for such a discrepancy. Any thoughts?
SNOOPY