CITY DEVELOPMENTS LIMITED ANNUAL REPORT 2021 FINANCIALS 186 187 NOTES TO THE FINANCIAL STATEMENTS NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2021 YEAR ENDED 31 DECEMBER 2021 21 INTEREST-BEARING BORROWINGS Group Company Note 2021 2020 2021 2020 $’000 $’000 $’000 $’000 Term loans 22 7,337,272 8,051,428 4,491,409 4,867,371 Bonds and notes 23 2,811,162 2,743,017 2,070,486 1,851,824 Bank loans 24 991,559 760,235 576,444 733,399 11,139,993 11,554,680 7,138,339 7,452,594 Non-current 5,952,032 8,756,068 3,937,631 5,780,877 Current 5,187,961 2,798,612 3,200,708 1,671,717 11,139,993 11,554,680 7,138,339 7,452,594 Market and liquidity risks Information about the Group’s and the Company’s exposure to interest rate, foreign currency and liquidity risks is included in note 41. 22 TERM LOANS Group Company Note 2021 2020 2021 2020 $’000 $’000 $’000 $’000 Secured 1,117,601 1,293,546 – – Unsecured 6,219,671 6,757,882 4,491,409 4,867,371 21 7,337,272 8,051,428 4,491,409 4,867,371 The term loans are obtained from banks and financial institutions. The secured term loans are generally secured by: – mortgages on the borrowing subsidiaries’ property, plant and equipment, investment properties and development properties (see notes 4, 5 and 12); – assignment of all rights and benefits to sale, lease and insurance proceeds in respect of certain hotels, investment and development properties; and – pledge on cash deposits of $115.5 million (2020: $115.0 million). The Group’s secured term loans bore interest at rates ranging from 0.84% to 11.00% (2020: 0.71% to 5.70%) per annum during the year. The Group’s unsecured term loans bore interest at rates ranging from0.35% to 4.11% (2020: 0.34% to 3.16%) per annum during the year. The Company’s unsecured term loans bore interest at rates ranging from 0.71% to 4.11% (2020: 0.71% to 2.78%) per annum during the year. 23 BONDS AND NOTES Group Company Note 2021 2020 2021 2020 $’000 $’000 $’000 $’000 Secured 740,676 758,486 – – Unsecured 2,070,486 1,984,531 2,070,486 1,851,824 21 2,811,162 2,743,017 2,070,486 1,851,824 Secured bonds and notes comprise the following: (i) $37 million (2020: $40 million) bond issued by an indirectly owned subsidiary of CDLHT. The bond bore interest at a rate of 0.71% (2020: 0.71%) per annum during the year. CDLHT’s interest in 2 Japan hotels (classified under property, plant and equipment) is held through a Tokutei Mokutei Kaisha (TMK) structure, and such TMK structures are required to issue bonds to fund the acquisition of assets. The bondholders have a statutory preferred right, under Article 128 of the Japan Asset Liquidation Law, to receive payment of all obligations under the bond prior to other creditors out of the assets of the TMK. Such right shall be junior to the priority of the general statutory lien under the Japan Civil Code. While the assets of the TMK are subject to a statutory preferred right, it is not considered a mortgage under Japan laws. Unless previously redeemed or purchased and cancelled, the bond is redeemable at its principal amount on its maturity date in September 2025. (ii) $118 million (2020: $128 million) bonds comprising 2 tranches issued by a subsidiary, which holds a Japan hotel (classified under investment properties) through a TMK structure. The bonds bore interest at rates ranging from 0.30% to 0.47% (2020: 0.31% to 0.47%) per annum during the year. The bondholders, under Article 128 of the Japan Asset Liquidation Law, are under a statutory lien to receive payment of their claims under the bonds prior to other creditors out of the assets of the TMK. The order of priority of such statutory lien shall be immediately after the general statutory liens under the Japan Civil Code. While the assets of the TMK are subject to a statutory preferred right, it is not considered a mortgage under Japan laws. Unless previously redeemed or purchased and cancelled, the bond is redeemable at its principal amount on its maturity date in March 2025. (iii) $530 million (2020: $530 million) medium term notes (MTNs) which comprise 2 series (2020: 2 series) of notes issued by a subsidiary as part of a $700million securedMTN programme established in 2001. TheMTNs bore interest at rates ranging from 1.65% to 2.96% (2020: 1.65% to 2.96%) per annum during the year and are secured by a mortgage over an investment property as well as rental and insurance proceeds to be derived from the said property. Unless previously redeemed or purchased and cancelled, the MTNs are redeemable at their principal amounts on their respective maturity dates from May 2024 to December 2025 (2020: May 2024 to December 2025).
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