KUWAIT ENERGY plc GROUP
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
Three months ended 31 March 2014
F-20
against issue of letters of guarantee, debt service accrual account and cash retention account related to term loans.
USD 936 thousand (31 December 2013: USD 936 thousand) are held in escrow for environmental restoration of
block 5 in Yemen.
12.
LONG-TERM LOANS
31.03.14
Unaudited
31.12.13
Audited
USD 000’s
USD 000’s
Non-current portion
Due to banks
99,468
88,867
Current portion
Due to banks
59,418
75,649
The details of long-term loans are as follows:
31.03.14
Unaudited
31.12.13
Audited
USD 000’s
USD 000’s
(ii) USD 165 million facility from Deutsche Bank
Syndicate that bears a floating interest rate of LIBOR
plus 5% per annum..
103,886
104,516
(ii) USD 60 million facility from Arab Bank that bears
an interest rate of LIBOR plus 5% per annum.
55,000
60,000
158,886
164,516
The reserve based facility of USD 165 million is secured by pledges on the assets of the subsidiary Kuwait
Energy Egypt Ltd. This loan is repayable by 30 June 2017 and is measured at amortised cost using the effective
interest method. As at 31 March 2014, the Group has undrawn loan facilities amounting to USD 61.1 million
(2013: USD 60.5 million) although the amount available for immediate draw down is limited to USD Nil based
on the latest borrowing base approved by Deutsche Bank as determined by the forecast cash flows arising from
the borrowing base assets. During the period ended 31 March 2014 the Group has: (a) repaid USD 15.6 million in
order to comply with the latest borrowing base, with this amount being recorded within current liabilities at 31
December 2013; and (b) drawn down USD 15.1 million as a result of a recent re-determination of the borrowing
base in March 2014.
The facility from Arab bank is secured by assigning the rights, title, benefits and interest in the shares of Jannah
Hunt Oil Company Limited to the bank as security. Further, receipts under the crude oil sales agreement with
Exxon Worldwide Trading Company have also been assigned to the bank as security. The loan is repayable in
equal quarterly instalments commencing from March 2014 with final maturity in December 2016. The Group has
repaid USD 5,000 thousand in March 2014.
The initial transaction cost of USD 5,958 thousand (31 Dec 2013: USD 6,455 thousand) for securing the loans is
classified as a non-current asset and is being amortised over the period of the loans.
13.
CONVERTIBLE LOAN
31.03.14
Unaudited
31.12.13
Audited
USD 000’s
USD 000’s
Non-current portion
110,028
105,807
