| 34 | BORROWINGS |
| 2017 | 2016 | |||||||
| RMB million | RMB million | |||||||
|
Non-current |
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|
Long-term bank borrowings |
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|
– secured (note (a)) |
4,816 | 7,169 | ||||||
|
– unsecured |
108 | 3,435 | ||||||
|
Guaranteed bonds (note (b)) |
10,956 | 8,476 | ||||||
|
Unsecured bonds (note (b)) |
8,831 | 8,810 | ||||||
|
|
|
|
|
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| 24,711 | 27,890 | |||||||
|
|
|
|
|
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|
Current |
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|
Current portion of long-term bank borrowings |
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|
– secured (note (a)) |
1,028 | 1,724 | ||||||
|
– unsecured |
3,103 | 135 | ||||||
|
Short-term bank borrowings |
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|
– unsecured |
24,959 | 9,983 | ||||||
|
Short-term debentures (note (c)) |
10,000 | 17,000 | ||||||
|
|
|
|
|
|||||
| 39,090 | 28,842 | |||||||
|
|
|
|
|
|||||
|
Total borrowings |
63,801 | 56,732 | ||||||
|
|
|
|
|
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|
The borrowings are repayable as follows: |
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|
Within one year |
39,090 | 28,842 | ||||||
|
In the second year |
6,527 | 4,833 | ||||||
|
In the third to fifth years, inclusive |
8,797 | 13,281 | ||||||
|
After the fifth year |
9,387 | 9,776 | ||||||
|
|
|
|
|
|||||
|
Total borrowings |
63,801 | 56,732 | ||||||
|
|
|
|
|
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Notes:
| (a) | As at 31 December 2017, the secured bank borrowings of the Group were pledged by the related aircraft and buildings with an aggregate carrying amount of RMB11,207 million (2016: RMB17,559 million) (note 18). |
| (b) | On 18 March 2013, the Company issued ten-year guaranteed bonds with a principal amount of RMB4.8 billion, at an issue price equal to the face value of the bonds. The bonds bear interest at the rate of 5.05% per annum, which are payable annually. The principal of the bonds will mature and be repayable on 18 March 2023. CEA Holding has unconditionally and irrevocably guaranteed the due payment and performance of the above bonds (note 47(d)). |
On 15 June 2016, the Company issued three-year medium-term bonds with a principal amount of RMB3 billion, at an issue price equal to the face value of the bonds. The bonds bear interest at the rate of 3.15% per annum, which are payable annually. The principal of the bonds will mature and become repayable on 15 June 2019.
On 14 July 2016, the Company issued five-year medium-term bonds with a principal amount of RMB4 billion, at an issue price equal to the face value of the bonds. The bonds bear interest at the rate of 3.39% per annum, which are payable annually. The principal of the bonds will mature and become repayable on 14 July 2021.
On 20 July 2016, the Company issued three-year medium-term bonds with a principal amount of RMB1.5 billion, at an issue price equal to the face value of the bonds. The bonds bear interest at the rate of 3.00% per annum, which are payable annually. The principal of the bonds will mature and become repayable on 20 July 2019.
On 28 September 2016, the Company issued three-year guaranteed notes with a principal amount of KRW120 billion, at an issue price equal to the face value of the bonds. The bonds bear interest at the rate of 2.05% per annum, which are payable semi-annually. The principal of the bonds will mature and become repayable on 28 September 2019. Korean Development Bank has unconditionally and irrevocably guaranteed the due payment and performance of the above bonds.
On 28 September 2016, the Company issued three-year notes with a principal amount of KRW55 billion, at an issue price equal to the face value of the bonds. The bonds bear interest at the rate of 2.85% per annum, which are payable semi-annually. The principal of the bonds will mature and become repayable on 28 September 2019.
On 24 October 2016, the Company issued ten-year corporate bonds with a total principal amount of RMB3 billion, of which bonds of RMB1.5 billion bear interest at the rate of 3.03% per annum and the remaining bonds of RMB1.5 billion bear interest at the rate of 3.30% per annum. The bonds are payable annually. The principal of the bonds will mature and become repayable on 24 October 2026. CEA Holding has unconditionally and irrevocably guaranteed the due payment and performance of the above bonds (note 47(d)).
On 16 November 2017, Eastern Air Overseas issued three-year corporate bonds with a total principal amount of SGD 500 million, at an issue price equal to the face value of the bonds. The bonds bear interest at the rate of 2.80% per annum. The bonds are payable semi-annually. The principal of the bonds will mature and become repayable on 16 November 2020. The Company has unconditionally and irrevocably guaranteed the due payment and performance of the above bonds (note 47(d)).
| (c) | On 21 August 2017, the Company issued short-term debentures with a principal of RMB3 billion and maturity of 270 days. The debentures bear interest at the rate of 4.16% per annum. |
On 22 August 2017, the Company issued short-term debentures with a principal of RMB3 billion and maturity of 150 days. The debentures bear interest at the rate of 4.25% per annum.
On 12 September 2017, the Company issued short-term debentures with a principal of RMB2 billion and maturity of 179 days. The debentures bear interest at the rate of 4.25% per annum.
On 26 September 2017, the Company issued short-term debentures with a principal of RMB2 billion and maturity of 179 days. The debentures bear interest at the rate of 4.20% per annum.
The terms of the long-term borrowings and bonds were summarized as follows:
| Interest rate and final maturities | 2017 | 2016 | ||||||||
| RMB million | RMB million | |||||||||
|
Long-term bank borrowings |
||||||||||
|
RMB denominated |
interest rates ranging from3.10% to 3.48% with final maturities through 2021 (2016: 3.40% to 4.41%) |
3,028 | 3,278 | |||||||
|
USD denominated |
interest rates ranging from 6-month libor +0.55% to 6-month libor +2.85% with final maturities through 2025 (2016: 6-month libor +0.75% to 6-month libor +3.75%) |
2,003 | 4,970 | |||||||
|
EUR denominated |
interest rates at 3 months Euribor+0.5% with final maturities through 2026 (2016: 3 months Euribor+0.5%) |
4,024 | 4,215 | |||||||
|
|
|
|
|
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|
Guaranteed bonds |
||||||||||
|
RMB denominated |
interest rates ranging from 3.03% to 5.05% with final maturities through 2026 (2016: 3.03% to 5.05%) |
7,794 | 7,792 | |||||||
|
SGD denominated |
interest rates at 2.80% with final maturities through 2020 |
2,435 | — | |||||||
|
KRW denominated |
interest rate at 2.05% with final maturities through 2019 (2016: 2.05%) |
727 | 684 | |||||||
|
|
|
|
|
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|
Unsecured bonds |
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|
RMB denominated |
interest rates ranging from 3.00% to 3.39% with final maturities through 2021 (2016: from 3.00% to 3.39%) |
8,500 | 8,500 | |||||||
|
KRW denominated |
interest rate at 2.85% with final maturities through 2019 (2016: 2.85%) |
331 | 310 | |||||||
|
|
|
|
|
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|
Total long-term borrowings and bonds |
28,842 | 29,749 | ||||||||
|
|
|
|
|
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Short-term borrowings of the Group are repayable within one year. As at 31 December 2017, the interest rates relating to such borrowings ranged from 0.70% to 4.35% per annum (2016: 1.49% to 4.35% per annum).