Annual Report 2021

CHINA MERCHANTS PORT HOLDINGS COMPANY LIMITED 164 Notes to the Consolidated Financial Statements For the year ended 31 December 2021 32. BANK AND OTHER BORROWINGS (CONTINUED) Notes: (a) As at 31 December 2021 and 2020, the following assets are pledged against the Group’s secured bank loans: 2021 2020 HK$’million HK$’million Property, plant and equipment (note 16) 356 458 Right-of-use assets (note 17) 230 230 586 688 In addition to the above, the entire shareholdings in two subsidiaries, owned by the Group as at 31 December 2021 and 2020, are also pledged to various banks for bank facilities granted to the relevant subsidiaries. (b) The amount is unsecured, interest-bearing at 4.65% (2020: 4.65%) per annum. (c) Included in the amount as at 31 December 2021 and 2020 is loans from a fellow subsidiary which is a financial institution approved and regulated by the People’s Bank of China and the China Banking Regulatory Commission. These amounts are unsecured, interest-bearing at 1.20% to 4.41% (2020: 1.20% to 4.80%) per annum. (d) The amount is unsecured, interest-bearing at 5% discount to the People’s Bank of China Benchmark Interest Rate per annum. (e) Listed notes issued by subsidiaries of the Company amounting to HK$19,415 million (2020: HK$19,274 million) are secured by corporate guarantees provided by the Company. The effective interest rate of the Group’s notes payables are as follows: 2021 2020 US$500 million, 5% guaranteed listed notes maturing in 2022 5.22% 5.22% US$900 million, 4.375% guaranteed listed notes maturing in 2023 4.57% 4.57% US$500 million, 4.75% guaranteed listed notes maturing in 2025 4.83% 4.83% US$600 million, 5% guaranteed listed notes maturing in 2028 5.18% 5.18% Brazilian Real 300 million (2020: Brazilian Real 428 million), IPCA +7.82% listed notes maturing in 2021 and 2022 14.66% 14.66% RMB2,500 million, 4.89% unlisted notes maturing in 2022 4.94% 4.94% The fair values of the listed notes payable and the unlisted notes payable were HK$21,259 million (2020: HK$22,152 million) and HK$3,017 million (2020: HK$2,971 million) respectively. The fair value of unlisted notes payable were determined by discounting the future cash flows at the current market interest rate available to the Group and the fair value of the listed notes payable was determined with reference to quoted market price. Other than the listed and unlisted notes payable, the carrying amounts of the bank and other borrowings approximate their fair values as at 31 December 2021 and 2020. (f) The Group is required to comply with certain financial covenants and non-financial covenants throughout the continuance of the relevant loans. The Group has complied with the covenants throughout the reporting period.