Pricing Supplement FCL TREASURY PTE. LTD. (lncorporated with limited liability in Singapore) s$3,000,000,000 Multicurrency Debt lssuance Programme Unconditionally and irrevocably guaranteed by FRASERS CENTREPOINT LIMITED SERIES NO: 005 TRANCHE NO:001 S$700,000,000 5.00 Per Cent. Subordinated Perpetual Securities lssue Price: 100 per cent. Australia and New Zealand Banking Group Limited DBS Bank Ltd. Deutsche Bank AG, Singapore Branch Maybank Kim Eng Securities Pte. Ltd. Oversea-Chinese Banking Corporation Limited Standard Chartered Bank United Overseas Bank Limited lssuing and Paying Agent DBS Bank Ltd. 10 Toh Guan Road #04-11 (Level 48) DBS Asia Gateway Singapore 608838 The date of this Pricing Supplement is 6 March 201S
This Pricing Supplement relates to the Tranche of Perpetual Securities referred to above. This Pricing Supplement, under which the Perpetual Securities described herein (the "Perpetual Securities") are issued, is supplemental to, and should be read in conjunction with, the lnformation Memorandum dated 12 September 2014 (as revised, supplemented, amended, updated or replaced from time to time) (the "lnformation Memorandum") issued in relation to the 5$3,000,000,000 Multicurrency Debt lssuance Programme of FCL Treasury Pte. Ltd. (the "lssuer"). Terms defined in the lnformation Memorandum have the same meanings in this Pricing Supplement. The Perpetual Securities will be issued on the terms of this Pricing Supplement read together with the lnformation Memorandum. Each of the lssuer and Frasers Centrepoint Limited (in its capacity as guarantor) accepts responsibility for the information contained in this Pricing Supplement. This Pricing Supplement does not constitute, and may not be used for the purposes of, an offer or solicitation by anyone in any jurisdiction in which such offer or solicitation is not authorised or to any person to whom it is unlawful to make such offer or solicitation, and no action is being taken to permit an offering of the Perpetual Securities or the distribution of this Pricing Supplement in any jurisdiction where such action is required. An advance tax ruling will be requested from the lnland Revenue Authority of Singapore (" RAS") to confirm, amongst other things, whether the IRAS would regard the Perpetual Securities as "debt securities" for the purposes of the lncome Tax Act, Chapter 134 of Singapore (the "lncome Tax Act") and the distributions (including Arrears of Distribution and any Additional Distribution Amounts) made under the Perpetual Securities as interest payable on indebtedness such that holders of the Perpetual Securities may enjoy the tax concessions and exemptions available for qualifying debt securities under the qualifying debt securities scheme, as set out in the section "Singapore Taxation" of the lnformation Memorandum provided that the relevant conditions are met. There is no guarantee that a favourable ruling will be obtained from the IRAS. ln addition, no assurance is given that the lssuer can provide all information or documents requested by IRAS for the purpose of the ruling request, and a ruling may not therefore be issued. lf the Perpetual Securities are not regarded as "debt securities" for the purposes of the lncome Tax Act and/or holders thereof are not eligible for the tax concessions under the qualifying debt securities scheme, the tax treatment to holders may differ. No assurance, warranty or guarantee is given on the tax treatment to holders of the Perpetual Securities in respect of the distributions payable to them (including Arrears of Distribution and Additional Distribution Amounts). lnvestors should therefore consult their own accounting and tax advisers regarding the Singapore income tax consequence of their acquisition, holding and disposal of the Perpetual Securities. Where interest, discount income, prepayment fee, redemption premium or break cost is derived from any of the Perpetual Securities by any person who (i) is not resident in Singapore and (ii) carries on any operations in Singapore through a permanent establishment in Singapore, the tax exemption available for qualifying debt securities (subject to certain conditions and if applicable) under the lncome Tax Act shall not apply if such person acquires such Perpetual Securities using the funds and profits of such person's operations through a permanent establishment in Singapore. Any person whose interest, discount income, prepayment fee, redemption premium or break cost derived from the Perpetual Securities is not exempt from tax (including for the reasons described above) shall include such income in a return of income made under the lncome Tax Act.
TCC Prosperity Limited ('TCCPL') has agreed to subscribe for 5$300,000,000 in aggregate principal amount of the Perpetual Securities (the "Relevant Perpetual Securities"). TCCPL's proposed subscription of the Relevant Perpetual Securities is considered an interested person transaction for the purposes of Chapter 9 of the Listing Manual of the Singapore Exchange Securities Trading Limited and the Guarantor has on 12 November 2O14 obtained approval from its shareholders for such interested person transaction. FCL TREASURY PTE. LTD Signed Director Chia Khong Shoong FRASERS CENTREPOINT LIMITED Signed D Signatory Piya Treruangrachada SERIES OO5 PRICING SUPPLEMENT
The terms of the Securities and additional provisions relating to their issue are as follows: 1. Series No.: 005 2. Tranche No.: 001 3. Currency: Singapore dollars 4. Principal Amount of Series: 5$700,000,000 5. Principal Amount of Tranche: 5$700,000,000 6. Denomination Amount: 5$250,000 7. Calculation Amount (if different from Denomination Amount): 5$250,000 8. lssue Date: 9 March 2015 9. Redemption Amount: Denomination Amount, save for a redemption under Condition 5(b) of the Perpetual Securities. Please see paragraph 22 for the definition of "Make-Whole Amount" 10. Status of Perpetual Securities: Subordinated Perpetual Securities 11. Distribution Basis: Fixed Rate 12. Distribution Commencement Date: 9 March 2015 13. Fixed Rate PerpetualSecurity (a) Day Count Fraction: Actual/365 (Fixed) (b) Distribution Payment Date(s): 9 March and 9 September in each year (c) (d) (e) lnitial Broken Amount: Final Broken Amount: Distribution Rate: The Distribution Rate applicable to the Perpetual Securities shall be: (i) in respect of the period from, and including, the lssue Date to, but excluding, the First Reset Date, 5.00 per cent. per annum plus the Change of Control Event Margin (if applicable); (ii) in respect of the period from, and including, the First Reset Date to, but excluding, the Step- Up Date, the applicable Reset Distribution Rate; and
(f) (g) First Reset Date: Reset Date: (iii) in respect of the period from, and including, the Step-Up Date and each Reset Date falling thereafter to, but excluding the immediately following Reset Date, the applicable Reset Distribution Rate For the purposes of the Conditions, "Reset Distribution Rate" means: (a) (in respect of the period from, and including, the First Reset Date to, but excluding, the Step- Up Date) the Swap Offer Rate with respect to the relevant Reset Date plus the lnitial Spread plus the Change of Control Event Margin (if applicable); and (b) (in respect of the period from, and including, the Step-Up Date and each Reset Date falling thereafter to, but excluding the immediately following Reset Date) the Swap Offer Rate with respect to the relevant Reset Date plus the lnitial Spread plus the Step-Up Margin plus the Change of Control Event Margin (if applicable) 9 March 2020 The First Reset Date, the Step-Up Date and each date falling every five years after the Step-Up Date 14. 15. 16. (h) lnitialspread: (i) (j) (k) (l) Reset Period: Step-Up Margin: Step-up Date: Relevant Rate: (m) Change of Control Event Margin: Floating Rate Perpetual Security Optional Payment: Optional Distribution: 3.015 per cent. Five years 1.00 per cent. 9 March 2025 1.00 per cent. Applicable
17. 18. 19. 20. 21. 22. Dividend Stopper: Dividend Pusher and Reference Period Non-cum ulative Deferral : Cumulative Deferral: Additional Distribution : lssuer's Redemption Option: lssuer's Redemption Option Period (Condition 5(b)) Applicable Applicable. 6 months Applicable Applicable Yes The lssuer may, by giving not less than 30 days' nor more than 60 days' prior notice to the Perpetual Securityholders, redeem all or some of the Perpetual Securities on any Distribution Payment Date provided that: (i) in the case of a redemption of any Perpetual Securities on any Distribution Payment Date that is prior to the First Reset Date, such Perpetual Securities will be redeemed at the Make-Whole Amount;and (ii) in the case of a redemption of any Perpetual Securities on the First Reset Date and each Distribution Payment Date occurring after the First Reset Date, such Perpetual Securities will be redeemed at the Redemption Amount, in each case, together with Distribution accrued (including any Arrears of Distribution and any Additional Distribution Amount) to (but excluding) the date fixed for redemption. For the purposes of Condition 5(b), the "Make-Whole Amount" means an amount equal to the greater of: (i) an amount equal to the sum of (a) the present value of the principal amount of the Perpetual Securities discounted from the First Reset Date; and
(b) the present value of the remaining scheduled interest with respect to the Perpetual Securities to and including the First Reset Date, the expression "present value" in (a) and (b) above to be calculated by discounting the relevant amounts to the date of redemption of the Perpetual Securities at the rate equal to the sum of (1) the closing Singapore dollar swap offer rate appearing on (in the case of Singapore dollar swap offer rates corresponding to durations of less than one year) Reuters Screen ABSFIXOI Page under the caption 'SGD SOR rates as of 11:00hrs London Time" under the column headed 'SGD SOR" (or its replacement page) and (in the case of Singapore dollar swap offer rates corresponding to durations of one year and above) Reuters Screen PYSGDI Page at l8:00hrs Singapore time under the left hand side of the column headed.tullet PREBON ASIA SEMI/ACT 365 - SGD/SGD" (or its replacement page) corresponding to the duration of the remaining period to the First Reset Date of the Perpetual Securities expressed on a semiannual compounding basis (rounded up, if necessary, to four decimal places) on the eighth business day prior to the date of redemption of the Perpetual Securities, provided that if there is no rate corresponding to the relevant period, the swap offer rate used will be the interpolated interest rate as calculated using the swap offer rates for the two
periods most closely approximating the duration of the remaining period to the First Reset Date and (2) 0.75 per cent.; and (ii) the Denomination Amount 23. 24. 25. 26. 27. Redemption for Taxation Reasons: lssuer's Redemption Option Period (Condition 5(c)) Redemption for Accounting Reasons lssuer's Redemption Option Period (Condition 5(d)) Redemption for Tax Deductibility: lssuer's Redemption Option Period (Condition 5(e)) Redemption in the case of Minimal Outstanding Amount: (Condition 5(f)) Redemption for Change of Control Event lssuer's Redemption Option Period (Condition 5(g)) Yes Yes Yes Yes Yes For the purposes of Condition 5(g): (i) a "Change of Gontrol Event" occurs when: (a) a person or persons acting in concert acquires or acquire Control of the lssuer or the Guarantor, if such person or persons does not have or do not have, and would not be deemed to have, Control of the lssuer or the Guarantor on the lssue Date; or (b) the lssuer or the Guarantor consolidates with or merges into or sells or transfers all or substantially all of the lssuer's or, as the case may be, the Guarantor's assets to any other person, unless the consolidation, merger, sale or transfer will not result in the other person or persons acquiring Control
over the lssuer, the Guarantor or, as the case may be, the successor entity; and (ii) "Gontrol" means, in relation to an entity, (a) the ownership or control of more than 50 per cent. of the voting rights of the issued share capital of such entity or (b) the right to appoint and/or remove all or the majority of the members of such entity's board of directors or other governing body, whether obtained directly or indirectly, and whether obtained by ownership of share capital, the possession of voting rights, contract or otherwise 28. Form of Perpetual Securities: Registered Global Certificate 29 30 Talons for future Coupons to be attached to Definitive Perpetual Securities: Applicable TEFRA exemption: No 31 32 33 34 Listing lsln Code: Common Code: Clearing System(s) Singapore Exchange Securities Trading Limited sg6vt9000005 The Central Depository (Pte) Limited 35 Depository The Central Depository (Pte) Limited 36 Delivery: Delivery free of payment 37 Method of issue of Perpetual Securities Syndicated lssue 38 The following Deale(s) are subscribing for the Perpetual Securities: Australia and New Zealand Banking Group Limited DBS Bank Ltd. Deutsche Bank AG, Singapore Branch Maybank Kim Eng Securities Pte. Ltd.
Oversea-Chinese Banking Corporation Limited Standard Chartered Bank United Overseas Bank Limited 39 40 41 42 43 44 45 46 The aggregate principal amount of Perpetual Securities issued has been translated in Singapore Dollars at the rate of [o] producing a sum of (for Perpetual Securities not denominated in Singapore dollars): lssuing and Paying Agent: Agent Bank: Registrar: Transfer Agent: Use of proceeds: Private Bank Rebate/Com m ission Other terms: DBS Bank Ltd DBS Bank Ltd DBS Bank Ltd DBS Bank Ltd The net proceeds arising from the issue of the Perpetual Securities (after deducting issue expenses) will be used for general corporate purposes, including refinancing the existing borrowings, and financing the investments and general working capital and/or capital expenditure requirements, of the lssuer, the Guarantor or the Group and the associated entities and joint venture entities of the Group. Applicable Details of any additions or variations to terms and conditions of the Securities as set out in the lnformation Memorandum: Please see the Appendix to this Pricing Supplement Any additions or variations to the selling restrictions: There shall be added after the second sentence of the first paragraph on page 161 of the lnformation Memorandum the following: "The lssuer and the Guarantor may also from time to time agree with the relevant Dealer(s) that the lssuer may pay certain third party commissions including, without
limitation, rebates to private bank investors in the Securities."
Appendix The section "Singapore Taxation" appearing from pages 156 to 160 of the lnformation Memorandum shall be deleted in its entirety and substituted with the following: "SINGAPORE TAXATION The statements below are general in nature and are based on certain aspecfs of current tax laws in Singapore and administrative guidelines and circulars rssued by the IRAS and MAS in force as at the date of this lnformation Memorandum and are subject to any changes in such laws, administrative guidelines or circulars, or the interpretation of those laws, guidelines or circulars, occurring after such date, which changes could be made on a retroactive basls. Ihese laws, guidelines and circulars are also subject to various interpretations and the relevant tax authorities or the courts could later disagree with the explanations or conclusions sef out below. Neither these statements nor any other statements in this lnformation Memorandum are intended or are to be regarded as advice on the tax position of any holder of the SecunTres or of any person acquiring, selling or othen tise dealing with the Securities or on any tax implications arising from the acquisition, sale or other dealings in respect of the Securifies. The statements made herein do not purport to be a comprehensive or exhaustive description of allthe tax considerations that may be relevant to a decision to subscribe for, purchase, own or dispose of the Securities and do not purport to deal with the tax consequences applicable to all categories of investors, so/ne of which (such as dealers in securities or financial institutions in Singapore which have been granted the relevant Financial Secfor lncentive(s)) may be subject to special rules or tax rates. Holders or prospective holders of the Securities are advised to consult their own professional tax advisers as to the Singapore or other tax consequences of the acquisition, ownership of or disposal of the SecunTles, including, in particular, the effect of any foreign, state or local tax laws to which they are subject. lt is emphasised that none of the lssuer, the Arranger, the Guarantor or any other persons involved in the Programme accepfs responsrbility for any tax effects or liabilities resulting from the subscription for, purchase, holding or disposal of the Securities. ln addition, the disclosure below is on the assumption that the IRAS regards each tranche of the Perpetual Secunlres as "debt securities" for the purposes of the ITA and that distribution payments made under each tranche of the Perpetual Securifies will be regarded as interest payable on indebtedness and holders thereof may therefore enjoy the tax concessions and exemptions available for qualifying debt secunïres, provided that the other conditions for the quatifying debt securities scheme are satisfied. lf any tranche of the Perpetual Securities rs nof regarded as "debt securities" for the purposes of the ITA and holders thereof are not eligible for the fax concessions under the qualifying debt securities scheme, the tax treatment to holders may differ. /nyesfors and holders of any tranche of the Perpetual Securifies should consult their own accounting and tax advisers regarding the Singapore income tax consequences of their acquisition, holding and disposal of any tranche of the Perpetual Securities. 1. lnterest and Other Payments Subject to the following paragraphs, under Section 12(6) of the lta, the following payments are deemed to be derived from Singapore: (a) any interest, commission, fee or any other payment in connection with any loan or indebtedness or with any arrangement, management, guarantee, or service relating to any loan or indebtedness which is (i) borne, directly or indirectly, by a person resident in Singapore or a permanent establishment in Singapore (except in respect of any business carried on outside Singapore through a permanent establishment outside Singapore or any immovable property situated outside Singapore) or (ii) deductible against any income accruing in or derived from Singapore; or
(b) any income derived from loans where the funds provided by such loans are brought into or used in Singapore. Such payments, where made to a person not known to the paying party to be a resident in Singapore for tax purposes, are generally subject to withholding tax in Singapore. The rate at which tax is to be withheld for such payments (other than those subject to the 15.0 per cent. final withholding tax described below) to non-resident persons (other than non-resident individuals) is currently 17.0 per cent. The applicable rate for non-resident individuals is currently 20.0 per cent. However, if the payment is derived by a person not resident in Singapore otherwise than from any trade, business, profession or vocation carried on or exercised by such person in Singapore and is not effectively connected with any permanent establishment in Singapore of that person, the payment is subject to a final withholding tax of 15.0 per cent. The rate of 15.0 per cent. may be reduced by applicable tax treaties. Pursuant to the Singapore Budget Statement 2015, il was announced that the highest marginal tax rate for Singapore-resident individuals will be increased lo 22.0 per cent. with effect from the year of assessment2017. lt is therefore possible that the above-mentioned withholding tax rate for non-resident individuals may similarly be increased from 20.0 per cent. to 22.0 per cent. However, certain Singapore-sourced investment income derived by individuals from financial instruments is exempt from tax, including: (a) interest from debt securities derived on or after 1 January 2004; (b) discount income (not including discount income arising from secondary trading) from debt securities derived on or after 17 February 2006; and (c) prepayment fee, redemption premium and break cost from debt securities derived on or after 15 February 2007, except where such income is derived through a partnership in Singapore or is derived from the carrying on of a trade, business or profession. ln addition, as the Programme as a whole was arranged by DBS Bank Ltd., which was a Financial Sector lncentive (Bond Market) Company (as defined in the ITA) at such time, any tranche of the Securities ("Relevant Securities") issued as debt securities under the Programme during the period from the date of this lnformation Memorandum to 31 December 2018 would be, pursuant to the ITA and MAS Circular FSD Cr 0212013 entitled "Extension and Refinement of Tax Concessions for Promoting the Debt Market" issued by MAS on 28 June 2013 (the'mas Circular"), "qualifying debt securities" ("QDS") for the purposes of the lta, to which the following treatment shall apply: (i) subject to certain prescribed conditions having been fulfilled (including the furnishing of a return on debt securities for the Relevant Securities in the prescribed format within such period as the relevant authorities may specify and such other particulars in connection with the Relevant Securities as the relevant authorities may require to MAS and such other relevant authorities as may be prescribed, and the inclusion by the lssuer in all offering documents relating to the Relevant Securities of a statement to the effect that where interest, discount income, prepayment fee, redemption premium or break cost from the Relevant Securities is derived by a person who is not resident in Singapore and who carries on any operation in Singapore through a permanent establishment in Singapore, the tax exemption for qualifying debt securities shall not apply if the non-resident person acquires the Relevant Securities using the funds and profits of such person's operations through the Singapore permanent establishment), interest, discount income (not including discount income
(ii) arising from secondary trading), prepayment fee, redemption premium and break cost (collectively, the "Qualifying lncome") from the Relevant Securities paid by the lssuer and derived by a holder who is not resident in Singapore and who (aa) does not have any permanent establishment in Singapore or (bb) carries on any operation in Singapore through a permanent establishment in Singapore but the funds used by that person to acquire the Relevant Securities are not obtained from such person's operation through a permanent establishment in Singapore, are exempt from Singapore tax; subject to certain conditions having been fulfilled (including the furnishing of a return on debt securities for the Relevant Securities in the prescribed format within such period as the relevant authorities may specify and such other particulars in connection with the Relevant Securities as the relevant authorities may require to MAS and such other relevant authorities as may be prescribed), Qualifying lncome from the Relevant Securities paid by the lssuer and derived by any company or body of persons (as defined in the ITA) in Singapore is subject to income tax at a concessionary rate of 10.0 per cent. (except for holders of the relevant Financial Sector lncentive(s) who may be taxed at different rates); and (iii) subject to: (aa) the lssuer including in all offering documents relating to the Relevant Securities a statement to the effect that any person whose interest, discount income, prepayment fee, redemption premium or break cost derived from the Relevant Securities is not exempt from tax shall include such income in a return of income made under the ITA; and (bb) the furnishing of a return on debt securities for the Relevant Securities in the prescribed format within such period as the relevant authorities may specify and such other particulars in connection with the Relevant Securities as the relevant authorities may require to MAS and such other relevant authorities as may be prescribed, payments of Qualifying lncome derived from the Relevant Securities are not subject to withholding of tax by the lssuer. Notwithstand ing the foregoing : (A) if during the primary launch of any tranche of Relevant Securities, the Relevant Securities of such tranche are issued to fewer than four persons and 50.0 per cent. or more of the issue of such Relevant Securities is beneficially held or funded, directly or indirectly, by related parties of the lssuer, such Relevant Securities would not qualify as QDS; and (B) even though a particular tranche of Relevant Securities are QDS, if, at any time during the tenure of such tranche of Relevant Securities, 50.0 per cent. or more of such Relevant Securities which are outstanding at any time during the life of their issue is beneficially held or funded, directly or indirectly, by any related party(ies) of the lssuer, Qualifying lncome derived from such Relevant Securities held by: (l) any related party of the lssuer; or (ll) any other person where the funds used by such person to acquire such Relevant Securities are obtained, directly or indirectly, from any related party of the lssuer,
shall not be eligible for the tax exemption or concessionary rate of tax as described above. The term "related pârty", in relation to a person, means any other person who, directly or indirectly, controls that person, or is controlled, directly or indirectly, by that person, or where he and that other person, directly or indirectly, are under the control of a common person. The terms "prepayment fee", "redemption premium" and "break cost" are defined in the ITA as follows: "prepayment fee", in relation to debt securities and qualifying debt securities, means any fee payable by the issuer of the securities on the early redemption of the securities, the amount of which is determined by the terms of the issuance of the securities; "redemption premium", in relation to debt securities and qualifying debt securities, means any premium payable by the issuer of the securities on the redemption of the securities upon their maturity; and "break cost", in relation to debt securities and qualifying debt securities, means any fee payable by the issuer of the securities on the early redemption of the securities, the amount of which is determined by any loss or liability incurred by the holder of the securities in connection with such redemption. References to "prepayment fee", "redemption premium" and "break cost" in this Singapore tax disclosure have the same meaning as defined in the lta. Where interest, discount income, prepayment fee, redemption premium or break cost (i.e. the Qualifying lncome) is derived from the Relevant Securities by any person who is not resident in Singapore and who carries on any operations in Singapore through a permanent establishment in Singapore, the tax exemption available for QDS under the ITA (as mentioned above) shall not apply if such person acquires such Relevant Securities using the funds and profits of such person's operations through a permanent establishment in Singapore. Any person whose interest, discount income, prepayment fee, redemption premium or break cost (i.e. the Qualifying lncome) derived from the Relevant Securities is not exempt from tax is required to include such income in a return of income made under the lta. Under the Qualifying Debt Securities Plus Scheme ("QDS Plus Scheme"), subject to certain conditions having been fulfilled:(including the furnishing of a return on debt securities in respect of the QDS in the prescribed format within such period as the relevant authorities may specify and such other particulars in connection with the QDS as the relevant authorities may require to MAS and such other relevant authorities as may be prescribed), income tax exemption is granted on Qualifying lncome from QDS (excluding Singapore Government Securities) which: (a) are issued during the period from 16 February 2008 to 31 December 2018; (b) have an original maturity of not less than 10 years; (c) cannot be redeemed, called, exchanged or converted within 10 years from the date of their issue; and (d) cannot be re-opened with a resulting tenure of less than 10 years to the original maturity date.
However, even if a particular tranche of the Relevant Securities are QDS which qualify under the QDS Plus Scheme, if, at any time during the tenure of such tranche of Relevant Securities, 50.0 per cent. or more of such Relevant Securities which are outstanding at any time during the life of their issue is beneficially held or funded, directly or indirectly, by any related party(ies) of the lssuer, Qualifying lncome from such Relevant Securities derived by: (i) any related party of the lssuer; or (i ) any other person where the funds used by such person to acquire such Relevant Securities are obtained, directly or indirectly, from any related party of the lssuer, shall not be eligible for the tax exemption under the QDS Plus Scheme as described above. The MAS Circular states that, with effect from 28 June 2013, the QDS Plus Scheme will be refined to allow QDS with certain standard early termination clauses (as prescribed in the MAS Circular) to qualify for the QDS Plus Scheme at the point of issuance of such debt securities. MAS has also clarified that if such debt securities are subsequently redeemed prematurely pursuant to such standard early termination clauses before the 1Oth year from the date of issuance of such debt securities, the tax exemption granted under the QDS Plus Scheme to Qualifying lncome accrued prior to such redemption will not be clawed back. Under such circumstances, the QDS Plus status of such debt securities will be revoked prospectively for such outstanding debt securities (if any), and holders thereof may still enjoy the tax benefits under the QDS scheme if the QDS conditions continue to be met. MAS has stated that, notwithstanding the above, QDS with embedded options with economic value (such as call, put, conversion or exchange options which can be triggered at specified prices or dates and are built into the pricing of such debt securities at the onset) which can be exercised within 10 years from the date of issuance of such debt securities will continue to be excluded from the QDS Plus Scheme from such date of issuance. 2. GapitalGains Any gains considered to be in the nature of capital made from the sale of the Securities will not be taxable in Singapore. However, any gains derived by any person from the sale of the Securities which are gains from any trade, business, profession or vocation carried on by that person, if accruing in or derived from Singapore, may be taxable as such gains are considered revenue in nature. Holders of the Securities who apply or are required to apply the Financial Reporting Standard 39- Financial lnstruments: Recognition and Measurement ("FRS 39"), may for Singapore income tax purposes be required to recognise gains or losses (not being gains or losses in the nature of capital) on the Securities, irrespective of disposal, in accordance with FRS 39. Please see the section below on "Adoption of FRS 39 Treatment for Singapore lncome Tax Purposes". 3. Adoption of FRS 39 Treatment for Singapore Income Tax Purposes The IRAS has issued a circular entitled "lncome Tax lmplications Arising from the Adoption of FRS 39 - Financial lnstruments: Recognition & Measurement" (the "FRS 39 Circular"). The ITA has since been amended to give effect to the FRS 39 Circular. The FRS 39 Circular generally applies, subject to certain "opt-out" provisions, to taxpayers who are required to comply with FRS 39 for financial reporting purposes.
Holders of the Securities who may be subject to the tax treatment under the FRS 39 Circular should consult their own accounting and tax advisers regarding the Singapore income tax consequences of their acquisition, holding or disposal of the Securities. 4. Estate Duty Singapore estate duty has been abolished with respect to all deaths occurring on or after 15 February 2008.'