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88 SIA Annual Report 02/03
Notes to the Financial Statements
31 March 2003
17 Long-Term Liabilities (in $ million) (continued)
The amounts payable by and debts payable to in respect of the Company and SATS at the balance sheet date are as
follows:
Company
Amounts payable by Debts payable to
31 March 31 March
2003 2002 2003 2002
Not later than two years 2,532.3 2,448.3 1,226.1 1,566.9
Later than two years but not later than five years 586.3 467.9 45.8 55.0
Later than five years but not later than ten years 900.0 1,041.3 137.2 170.7
4,018.6 3,957.5 1,409.1 1,792.6
SATS
Amounts payable by Debts payable to
31 March 31 March
2003 2002 2003 2002
Not later than two years 244.4 242.2 35.2 47.6
Later than two years but not later than five years 46.0 48.0 50.4 54.2
290.4 290.2 85.6 101.8
Loans
Of the Group’s $222.9 million loans, $220.5 million is secured by a first priority mortgage over 1 B747-400
freighter. Interest on the loan is charged at a margin above the floating rate linked to London Interbank Offer Rate
("LIBOR") at 1.99% per annum. The remaining loan of $2.4 million is unsecured with interest rates ranging from
1.06% to 2.07% (2001-02: 1.16% to 3.60%) per annum.
Finance leases
The Company holds 2 B747-400s under finance leases which mature in 2007 without any options for renewal. Both
leases have options for the Company to purchase the aircraft at the end of the lease period of 12.5 years. One of
the B747-400 leases has an additional purchase option exercisable in the 10.5th year. The Company intends to hold
the aircraft until the end of the lease periods. Sub-leasing is allowed under the lease agreements.
In 2001-02, as part of Cargo Division’s corporatization, SIA sub-leased both aircraft to Singapore Airlines Cargo Pte
Ltd ("SIA Cargo") under identical terms and conditions. SIA Cargo paid the entire outstanding lease liabilities by
issuing ordinary shares at par for cash to SIA.
Additionally, SIA Cargo has 1 B747-400 under a finance lease which matures in 2026, without any options for
renewal. The lease has options for SIA Cargo to purchase the aircraft exercisable between the lease period of
12 years and 15 years and SIA Cargo intends to exercise that option. Sub-leasing is allowed under the lease
agreement.