NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2023 NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2023 20 RESERVES (CONT’D) The foreign currency translation reserve comprises mainly: (a) foreign exchange differences arising from the translation of the financial statements of foreign operations whose functional currencies are different from the presentation currency of the Company; (b) the gain or loss on financial instruments used to hedge the Group’s net investment in foreign operations that are determined to be effective hedges; and (c) exchange differences on monetary items which form part of the Group’s net investment in foreign operations, provided certain conditions are met. 21 INTEREST-BEARING BORROWINGS Group Company Note 2023 2022 2023 2022 $’000 $’000 $’000 $’000 Term loans 22 7,424,542 5,909,397 6,416,821 4,606,286 Bonds and notes 23 2,859,569 2,651,786 2,039,735 1,971,771 Bank loans 24 1,016,192 1,108,239 772,883 874,187 Bank overdrafts 18 325,630 –* – – 11,625,933 9,669,422 9,229,439 7,452,244 Non-current 7,713,087 7,315,400 6,714,608 6,091,010 Current 3,912,846 2,354,022 2,514,831 1,361,234 11,625,933 9,669,422 9,229,439 7,452,244 * In 2022, cash pool overdrafts of $313,521,000 were set off against cash and cash equivalents in the statement of financial position. The presentation has changed in the current year. The cash pool overdrafts are part of the Group’s cash-pooling arrangements with banks where certain subsidiaries’ cash deposits and overdrafts are pooled to optimise its cash balances. 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 2023 2022 2023 2022 $’000 $’000 $’000 $’000 Secured 489,950 622,689 – – Unsecured 6,934,592 5,286,708 6,416,821 4,606,286 21 7,424,542 5,909,397 6,416,821 4,606,286 The term loans are obtained from banks and financial institutions. 22 TERM LOANS (CONT’D) 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 13); – assignment of all rights and benefits to sale, lease and insurance proceeds in respect of certain property, plant and equipment, investment and development properties; and – pledge on cash deposits of $119.4 million (2022: $117.2 million). The Group’s secured term loans bore interest at 1.13% to 6.46% (2022: 2.97% to 5.56%) per annum as at 31 December 2023. The Group’s unsecured term loans bore interest at 0.83% to 6.63% (2022: 0.36% to 5.22%) per annum as at 31 December 2023. The Company’s unsecured term loans bore interest at 0.83% to 6.49% (2022: 1.45% to 5.16%) per annum as at 31 December 2023. 23 BONDS AND NOTES Group Company Note 2023 2022 2023 2022 $’000 $’000 $’000 $’000 Secured 819,835 680,015 – – Unsecured 2,039,734 1,971,771 2,039,735 1,971,771 21 2,859,569 2,651,786 2,039,735 1,971,771 Secured bonds and notes comprise the following: (i) $28 million [JPY3,011 million] (2022: Nil) bonds comprising 1 tranche issued by a subsidiary, which holds a Japan hotel (classified under investment properties) through a TMK structure. The bonds bore interest at 1.50% (2022: Nil) per annum as at 31 December 2023 and are secured by a guarantee from its intermediate holding company. Unless previously redeemed or purchased and cancelled, the bonds are redeemable at their principal amounts on their maturity date in December 2028. (ii) $93 million [JPY10,000 million] (2022: $101 million) [JPY9,980 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 0.31% to 0.47% (2022: 0.31% to 0.46%) per annum as at 31 December 2023. 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 bonds are redeemable at their principal amounts on their maturity date in March 2025. FINANCIALS FINANCIALS ANNUAL REPORT 2023 CITY DEVELOPMENTS LIMITED 187 186
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