The loans provided to Fiji National Provident Fund’s subsidiaries by FNPF stands at $251.1 million as at 2013.

The total value is $448 million, however, the FNPF is carrying a provision for impairment against the Natadola loan of $197 million.

The provision is based on an independent valuation of Natadola Bay Resort Limited’s property which was undertaken in 2011.

According to the 2013 FNPF Annual Report, Natadola Bay Resort Limited’s total loan is $302.1 million.

The Fund said loans were advanced to the subsidiary Natadola Bay Resorts Limited for the construction of the Intercontinental Hotel and Golf Course in Natadola.

According to the loan offer documents, the loan ranges between 15 to 19 years at interest rates between 9 to 13 percent which were to be reviewed after the completion of the projects.

There has been no movement in the interest rate.

Interest charged by FNPF in the current financial year is $7.9 million.

Meanwhile, the Natadola Bay Residential Development has commenced phase one of the project which involves the preparation of the Development Charter and Development Plan.

The report also stated that Telecom Fiji Limited’s FNPF loan stands at $50.7 million, Amalgamated Telecom Holdings Limited’s loan stands at $20 million, FNPF Investments Limited has $8.7 million, Home Finance Company’s FNPF loan is $29.5 million while Penina Limited’s total loan from FNPF stands at $37.5 million.
 
TFL’s loan is secured from FNPF through a mortgage over most of TFL’s assets.

The $20 million loan to Vodafone Fiji Limited is at an interest rate of 4.95 percent secured by guarantee from Vodafone Fiji and maturing next year.

Loans were advanced to Penina Limited for the construction of a shopping complex in Suva.

The loan stands at $37.5 million with an interest rate of 4 percent.


Story by: Vijay Narayan