| 27 | BORROWINGS |
| December 31, 2017 |
December 31, 2016 |
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| RMB | RMB | |||||||
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Short-term borrowings excluding current portion of long-term borrowings |
93,881 | 71,969 | ||||||
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Current portion of long-term borrowings |
81,536 | 71,415 | ||||||
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| 175,417 | 143,384 | |||||||
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Long-term borrowings |
289,858 | 372,887 | ||||||
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| 465,275 | 516,271 | |||||||
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Borrowings of the Group of RMB 45,463 were guaranteed by CNPC, its fellow subsidiaries and a third party at December 31, 2017 (December 31, 2016: RMB 65,692).
The Group’s borrowings include secured liabilities totaling RMB 2,829 at December 31, 2017 (December 31, 2016: RMB 251).
| December 31, 2017 |
December 31, 2016 |
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| RMB | RMB | |||||||
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Total borrowings: |
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— interest free |
130 | 145 | ||||||
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— at fixed rates |
253,369 | 282,822 | ||||||
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— at floating rates |
211,776 | 233,304 | ||||||
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| 465,275 | 516,271 | |||||||
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Weighted average effective interest rates: |
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— bank loans |
2.42 | % | 1.86 | % | ||||
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— corporate debentures |
3.62 | % | 3.81 | % | ||||
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— medium-term notes |
3.81 | % | 3.86 | % | ||||
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— other loans |
3.87 | % | 3.77 | % | ||||
The borrowings by major currency at December 31, 2017 and December 31, 2016 are as follows:
| December 31, 2017 |
December 31, 2016 |
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| RMB | RMB | |||||||
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RMB |
332,383 | 372,111 | ||||||
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US Dollar |
124,312 | 136,829 | ||||||
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Other currency |
8,580 | 7,331 | ||||||
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| 465,275 | 516,271 | |||||||
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The fair values of the Group’s long-term borrowings including the current portion of long-term borrowings are RMB 343,707 (December 31, 2016: RMB 438,805) at December 31, 2017. The carrying amounts of short-term borrowings approximate their fair values.
The fair values are based on discounted cash flows using applicable discount rates based upon the prevailing market rates of interest available to the Group for financial instruments with substantially the same terms and characteristics at the dates of the statement of financial position. Such discount rates ranged from -0.24% to 6.04% per annum as of December 31, 2017 (December 31, 2016: -0.09% to 4.90% per annum) depending on the type of the borrowings.
The following table sets out the borrowings’ remaining contractual maturities at the date of the statement of financial position, which are based on contractual undiscounted cash flows including principal and interest, and the earliest contractual maturity date:
| December 31, 2017 |
December 31, 2016 |
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| RMB | RMB | |||||||
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Within 1 year |
189,050 | 160,572 | ||||||
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Between 1 and 2 years |
69,159 | 102,096 | ||||||
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Between 2 and 5 years |
191,879 | 209,653 | ||||||
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After 5 years |
70,179 | 106,879 | ||||||
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| 520,267 | 579,200 | |||||||
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Reconciliation of movements of borrowings to cash flows arising from financing activities:
| Borrowings | ||||
| RMB | ||||
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At 1 January 2017 |
516,271 | |||
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Changes from financing cash flows: |
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Increase in borrowings |
730,252 | |||
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Repayments of borrowings |
(773,940 | ) | ||
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Other borrowing costs paid |
(173 | ) | ||
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Total changes from financing cash flows |
(43,861 | ) | ||
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Exchange adjustments |
(7,135 | ) | ||
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At 31 December 2017 |
465,275 | |||
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