Annual Report 2019

209 ANNUAL REPORT 2019 33. BANK AND OTHER BORROWINGS (CONTINUED) Notes: (a) As at 31 December 2019, the following assets are pledged against the Group’s secured bank loans and a loan from fellow subsidiary (2018: bank loans): 2019 2018 HK$’million HK$’million Property, plant and equipment (note 17) 417 413 Right-of-use assets (note 18) 356 — Land use rights (note 20) — 184 773 597 In addition to the above, the entire shareholdings in two subsidiaries, owned by the Company and its subsidiary as at 31 December 2019 and 2018, are also pledged to various banks for bank facilities granted to the relevant subsidiaries. (b) The amount is unsecured, interest-bearing at 4.65% (2018: 4.65%) per annum and is not required to be repaid within twelve months from the end of the reporting period. (c) Included in the amount for the year ended 31 December 2019 and 2018 is loans from fellow subsidiary which is a financial institution approved and regulated by the People’s Bank of China and the China Banking Regulatory Commission amounting to HK$860 million (2018: HK$634 million). These amounts are unsecured, interest-bearing at 4.13% to 4.80% (2018: 4.28% to 4.80%) per annum. Except for the amount of HK$357 million (2018: HK$154 million), the remaining balance is repayable within twelve months from the end of the reporting period. The remaining balance for the year ended 31 December 2019 is a loan from a fellow subsidiary amounting to HK$167 million (2018: nil) which is secured by right- of-use assets and interest bearing at 4.75% (2018: nil) per annum. Except for the amount of HK$161 million (2018: nil), the remaining balance is repayable within twelve months from the end of the reporting period. (d) The amount is unsecured, interest-bearing at 5% discount to the People’s Bank of China Benchmark Interest Rate per annum and repayable within twelve months from the end of the reporting period. (e) As at 31 December 2018, the amount was unsecured, interest-bearing at floating interest rate per annum and repayable within twelve months from the end of the reporting period. The entire balance has been settled during the current year. (f) Listed notes issued by subsidiaries of the Company amounting to HK$20,889 million (2018: HK$20,979 million) are secured by corporate guarantees provided by the Company. During the year ended 31 December 2019, the Group has early repaid in full the RMB500 million, 5.15% unlisted notes maturing in 2021. The effective interest rate of the Group’s notes payables are as follows: 2019 2018 US$200 million, 3.5% guaranteed listed notes maturing in 2020 3.64% 3.64% 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 428 million, IPCA +7.82% listed notes maturing in 2022 14.66% 14.66% RMB500 million, 5.15% unlisted notes maturing in 2021 N/A 5.22% 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$23,529 million (2018: HK$22,558 million) and HK$2,861 million (2018: HK$3,598 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 2019 and 2018.