NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2022 NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2022 22 INTEREST-BEARING BORROWINGS Group Company Note 2022 2021 2022 2021 $’000 $’000 $’000 $’000 Term loans 23 5,909,397 7,337,272 4,606,286 4,491,409 Bonds and notes 24 2,651,786 2,811,162 1,971,771 2,070,486 Bank loans 25 1,108,239 991,559 874,187 576,444 9,669,422 11,139,993 7,452,244 7,138,339 Non-current 7,315,400 5,952,032 6,091,010 3,937,631 Current 2,354,022 5,187,961 1,361,234 3,200,708 9,669,422 11,139,993 7,452,244 7,138,339 Information about the Group’s and the Company’s exposure to interest rate, foreign currency and liquidity risks is included in note 42. 23 TERM LOANS Group Company Note 2022 2021 2022 2021 $’000 $’000 $’000 $’000 Secured 622,689 1,117,601 – – Unsecured 5,286,708 6,219,671 4,606,286 4,491,409 22 5,909,397 7,337,272 4,606,286 4,491,409 The term loans are obtained from banks and financial institutions. 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 $117.2 million (2021: $115.5 million). The Group’s secured term loans bore interest at 2.97% to 5.56% (2021: 0.84% to 11.00%) per annum as at 31 December 2022. The Group’s unsecured term loans bore interest at 0.36% to 5.22% (2021: 0.35% to 4.11%) per annum as at 31 December 2022. The Company’s unsecured term loans bore interest at 1.45% to 5.16% (2021: 0.71% to 4.11%) per annum as at 31 December 2022. 21 EQUITY COMPENSATION BENEFITS (CONT’D) (ii) Executive Share Plan The Executive Share Plan (“ESP”) was approved by M&C on 18 February 2016 to replace participation in the LongTerm Incentive Plan by senior executive management. These awards would vest over a three-year period (25% after years one and two, 50% after three years), subject to the rules of the Executive Share Plan. Following the Delisting, the shares awarded under the ESP will be cash settled at a fixed price of £6.85 per share in line with the Final Offer. Details of the options granted under the M&C Group option schemes on the unissued ordinary shares of £0.30 each in M&C Group, as at the end of the financial year, presented in Sterling Pound, are as follows: (i) Annual Bonus Plan Date of award Balance at beginning of year Awards vested during the year Awards forfeited during the year Balance at end of year Share price prevailing on date of grant Fair value Vesting date £ £ 2022 13.08.2019 10,040 (9,171) (869) – 6.80 6.85 13.08.2020/21/22 2021 13.05.2016 196 – (196) – 4.40 4.40 13.05.2017/18/19 14.12.2018 12,990 (12,599) (391) – 4.68 4.48 to 4.61 14.12.2019/20/21 13.08.2019 17,551 (6,816) (695) 10,040 6.80 6.85 13.08.2020/21/22 30,737 (19,415) (1,282) 10,040 (ii) Executive Share Plan Date of award Balance at beginning of year Awards vested during the year Awards forfeited during the year Balance at end of year Share price prevailing on date of grant Fair value Vesting date £ £ 2022 09.08.2019 2,080 (2,080) – – 6.80 6.85 09.08.2020/21/22 2021 04.12.2018 7,341 (7,341) – – 4.66 4.47 to 4.60 04.12.2019/20/21 09.08.2019 9,367 (7,287) – 2,080 6.80 6.85 09.08.2020/21/22 16,708 (14,628) – 2,080 CITY DEVELOPMENTS LIMITED ANNUAL REPORT 2022 FINANCIALS 184 185
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