CITY DEVELOPMENTS LIMITED ANNUAL REPORT 2021 FINANCIALS 188 189 NOTES TO THE FINANCIAL STATEMENTS NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2021 YEAR ENDED 31 DECEMBER 2021 23 BONDS AND NOTES (CONT’D) (iv) $59 million (2020: $64 million) bond issued by a subsidiary, which holds a Japan development property through a TMK structure. The bond bore interest at rates ranging from 0.37% to 0.39% (2020: 0.34% to 0.39%) per annum during the year. Unless previously redeemed or purchased and cancelled, the bond is redeemable at its principal amount on its maturity date in March 2022. 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. Unsecured bonds and notes comprise the following: (i) $2,075 million (2020: $1,855 million) medium term notes (MTNs) which comprise 11 series (2020: 11 series) of notes issued by the Company at various interest rates as part of a $5.0 billion unsecured MTN programme established in 1999. The MTNs bore interest at rates ranging from 2.00% to 3.90% (2020: 2.00% to 3.90%) per annum during the year. Unless previously redeemed or purchased and cancelled, the MTNs are redeemable at their principal amounts on their respective maturity dates from July 2022 to June 2026 (2020: March 2021 to June 2026). (ii) $133 million MTNs as at 31 December 2020, which comprise 1 series of notes issued by a subsidiary as part of a $1.0 billion unsecured MTN programme established in 2002. The MTNs bore interest at a rate of 3.98% per annum. The notes were redeemed in August 2021. 24 BANK LOANS Group Company Note 2021 2020 2021 2020 $’000 $’000 $’000 $’000 Bank loans repayable within 1 year – secured 1,648 3,467 – – – unsecured 989,911 756,768 576,444 733,399 21 991,559 760,235 576,444 733,399 The Group’s secured bank loans bore interest at rates ranging from 3.00% to 3.44% (2020: 1.26% to 3.70%) per annum during the year. The loan is secured by a pledge on cash deposits (note 17). The Group’s unsecured bank loans bore interest at rates ranging from 0.38% to 3.46% (2020: 0.32% to 3.95%) per annum during the year. The Company’s unsecured bank loans bore interest at rates ranging from 0.45% to 3.46% (2020: 0.32% to 3.95%) per annum during the year. 25 EMPLOYEE BENEFITS Group Company 2021 2020 2021 2020 $’000 $’000 $’000 $’000 Net liability for: – defined benefit obligations 24,534 30,139 – – – short-term accumulating compensated absences 32,949 31,562 2,960 1,616 – long service leave 730 1,340 – – 58,213 63,041 2,960 1,616 Non-current 24,637 30,997 – – Current 33,576 32,044 2,960 1,616 58,213 63,041 2,960 1,616 Group 2021 2020 $’000 $’000 Net liability for defined benefit obligations Present value of unfunded obligations 6,267 7,276 Present value of funded obligations 152,062 158,782 Fair value of plan assets (133,795) (135,919) Liability for defined benefit obligations 24,534 30,139 Changes in the present value of defined benefit obligations Defined benefit obligations at 1 January 166,058 158,412 Remeasurements: – Experience adjustment (101) (3,779) – Actuarial loss from changes in demographic assumptions 1,333 306 – Actuarial (gain)/loss from changes in financial assumptions (5,289) 14,085 Benefits paid (322) (9,127) Interest cost 2,222 2,937 Current service costs 852 1,370 Past service costs (1,328) – Translation differences on consolidation (5,096) 1,854 Defined benefit obligations at 31 December 158,329 166,058 Changes in the fair value of plan assets Fair value of plan assets at 1 January 135,919 130,598 Return on plan assets, excluding interest income 655 7,165 Contributions by employees – 234 Contributions by employer 761 1,145 Benefits paid (6,396) (9,127) Interest income 1,763 2,338 Translation differences on consolidation 1,093 3,566 Fair value of plan assets at 31 December 133,795 135,919
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