Breakdown of repayment schedule for the 2 loans

For the $50m Galaxy Loan taken up in 2010, the repayment schedule was as follows:

In year 2011: $10m principal + $1.5m front end fee + $5m interest = $16.5m
In year 2012: $10m principal + $1.6m front end fee + $4m interest = $15.6m
In year 2013: $30m principal + $1.5m front end fee + $3m interest = $34.5m
3-YEAR TOTAL: $50m principal + $4.6m front end fee + $12m interest = $66.6m

The total cost for this loan would be $16.6m ($4.6m front end fee + $12.0m interest). That's 33.2% of the principal amount. Over 3 years, that's 11.06% financing cost per annum.



For the $46m Glory Loan taken up recently, the repayment schedule is as follows:

In year 2014: $0 principal + $2.6m front end fee + $3.6m interest = $6.2m
In year 2015: $0 principal + $2.6m front end fee + $3.6m interest = $6.2m
In year 2016: $0 principal + $2.6m front end fee + $3.6m interest = $6.2m
In year 2017: $0 principal + $2.6m front end fee + $3.6m interest = $6.2m
In year 2018: $0 principal + $2.6 front end fee + $3.6m interest = $6.2m
In year 2019: $45m principal + $0 front end fee + $3.6m interest = $48.6m
6-YEAR TOTAL: $45m principal + $13m front end fee + $21.6m interest = $79.6m

The total cost for this loan would be $34.6m ($13m front end fee + $21.6m interest). That's 76.8% of the principal amount. Over 6 years, that's 12.8% financing cost per annum.

Based on this simplistic way of looking at the financing cost, it would appear that the new loan is more costly than the previous one, contrary to the leaders' claim that they have taken up a lower-cost loan (by merely looking at the interest of 10% p.a. for the Galaxy Loan versus the 8% p.a. for the Glory Loan).