Annual Report 2023

Notes to the Consolidated Financial Statements For the year ended 31 December 2023 162 CHINA MERCHANTS PORT HOLDINGS COMPANY LIMITED 28. PERPETUAL CAPITAL SECURITIES In October 2020, CMHI Finance (BVI) Co., Ltd (“CMFBVI”), a wholly-owned subsidiary of the Company, issued US$600 million 3.5% and US$200 million 3.875% guaranteed perpetual capital securities (“2020 Perpetual Capital Securities”). Any amount payable arising from distribution or redemption were unconditionally and irrevocably guaranteed by the Company. Distribution on 2020 Perpetual Capital Securities are payable semi-annually in arrears on April and October each year (“Distributions Payment Date”) and can be deferred at the discretion of CMFBVI and is not subject to any limit as to the number of times distributions. The 2020 Perpetual Capital Securities have no fixed maturity. US$600 million 3.5% guaranteed perpetual capital securities are redeemable at CMFBVI’s option on 9 October 2023 or any Distributions Payment Date at their principal amounts, and US$200 million 3.875% guaranteed perpetual capital securities are redeemable at CMFBVI’s option on 9 October 2025 or any Distributions Payment Date at their principal amounts. While any distributions are unpaid or deferred, the Company and CMFBVI cannot declare or, pay dividends or make distributions or similar periodic payments in respect of, or repurchase, redeem or otherwise acquire any securities of lower or equal rank, which includes the ordinary shares of the Company and CMFBVI. The 2020 Perpetual Capital Securities are classified as equity instrument. Any distributions made by CMFBVI to the holders are recognised in equity in the consolidated financial statements of the Company. During the year ended 31 December 2020, a net proceeds amounted to US$799 million (equivalent to approximately HK$6,185 million) was received. During the year, distributions amounted to HK$225 million, representing 3.6% of the perpetual capital securities issued, was paid to the holders of the perpetual capital securities. The Group has redeemed US$600 million of the 2020 Perpetual Capital Securities in October 2023.