Annual Report 2019

NOTESTOTHE CONSOLIDATED FINANCIAL STATEMENTS For the year ended 31 December 2019 127 The United Laboratories International Holdings Limited Annual Report 2019 31. BORROWINGS (Continued) Interest rate 2019 2018 RMB’000 RMB’000 Fixed rate 2,057,204 2,209,928 Hong Kong Interbank Offered Rate (“HIBOR”) plus 1.50% to 3.00% (2018: HIBOR plus 1.85% to 3.00%) 1,291,680 830,611 PRC Loan Prime Rate (“LPR”) plus 0.5% to 0.86% (2018: 1.79%) 342,035 3,000 EURO LIBOR plus 0.80% to 2.00% (2018: LIBOR plus 0.70% to 1.75%) 297,070 165,415 3,987,989 3,208,954 The range of effective interest rates of the floating rate borrowings at 31 December 2019 is 0.80% to 6.19% (2018: 0.70% to 5.49%) per annum. The range of effective interest rates of the fixed rate borrowings at 31 December 2019 is 0.3% to 5.72% (2018: 1.85% to 6.81%) per annum. In 2015 and 2016, the Group established a bond issue programme for issuance of bonds from time to time, with a term of three years. As at 31 December 2019, the outstanding balance of the fixed rate bonds amounting to nil (2018: RMB54,915,000) were unsecured, carried a fixed coupon rate of 6% per annum and were repayable in instalments semi-annually in arrears on 31 May and 30 November. The bonds issued at par, carry interest at an effective interest rate of 6.81% per annum and the maturity dates are in February, July, September, October, November and December 2019. The bonds have been fully repaid as at 31 December 2019. In March 2017, the Group issued fixed rate bonds of RMB1,100,000,000 carrying a fixed coupon rate of 5.5% per annum with a maturity of three years (extendable to five years) and was redeemable at par value (the “Corporate Bonds”). As at 31 December 2019, the carrying amount of fixed rate bonds is RMB1,095,418,000 (2018: RMB1,093,274,000). The Company has the right to adjust the interest rate after the expiration of 3 years of maturity period, and the interest adjustment notice will be issued on the 30th trading day prior to the 3rd years’ interest payment date. The bondholders have the option to extend two more years after the issuance of the interest adjustment notice. The Corporate Bonds are issued at par, carries at an effective interest rate of 5.72% per annum. The Corporate Bonds were issued to the PRC domestic independent and qualified investors in accordance with the laws and regulations of the PRC, listed and traded on The Shanghai Stock Exchange. As the bondholders have the right to demand payment of the Corporate Bonds from the Group as at 31 December 2019, the Corporate Bonds have been included in current liabilities as at 31 December 2019.