| (a) | As at December 31, 2017 and 2016, borrowings are analyzed as follows: |
| 2017 | 2016 | |||||||
| RMB million | RMB million | |||||||
|
Non-current |
||||||||
|
Long-term borrowings |
||||||||
|
– secured (Notes (i)&(ii)&(iii)) |
596 | 755 | ||||||
|
– unsecured |
5,427 | 314 | ||||||
|
|
|
|
|
|||||
| 6,023 | 1,069 | |||||||
|
Corporate bond |
||||||||
|
– unsecured (Note (iv)) |
10,000 | 13,000 | ||||||
|
Medium-term notes |
||||||||
|
– unsecured (Note (v)) |
4,696 | 4,689 | ||||||
|
|
|
|
|
|||||
| 20,719 | 18,758 | |||||||
|
Current |
||||||||
|
Current portion of long-term borrowings |
||||||||
|
– secured (Notes (i)&(ii)&(iii)) |
208 | 220 | ||||||
|
– unsecured |
3,734 | 345 | ||||||
|
Short-term borrowings |
||||||||
|
– unsecured |
20,626 | 4,195 | ||||||
|
Ultra short-term financing bills |
||||||||
|
– unsecured |
— | 21,986 | ||||||
|
|
|
|
|
|||||
| 24,568 | 26,746 | |||||||
|
Current portion of corporate bond |
||||||||
|
– unsecured (Note (iv)) |
3,000 | — | ||||||
|
|
|
|
|
|||||
| 27,568 | 26,746 | |||||||
|
|
|
|
|
|||||
|
Total borrowings |
48,287 | 45,504 | ||||||
|
|
|
|
|
|||||
|
The borrowings are repayable: |
||||||||
|
Within one year |
27,568 | 26,746 | ||||||
|
In the second year |
9,126 | 440 | ||||||
|
In the third to fifth year |
11,566 | 18,260 | ||||||
|
After the fifth year |
27 | 58 | ||||||
|
|
|
|
|
|||||
|
Total borrowings |
48,287 | 45,504 | ||||||
|
|
|
|
|
|||||
Notes:
| (i) | As at December 31, 2017, bank borrowings of the Group totaling RMB440 million (December 31, 2016: RMB660 million) were secured by mortgages over certain of the Group’s aircraft with aggregate carrying amounts of RMB1,331 million (December 31, 2016: RMB1,443 million). |
| (ii) | As at December 31, 2017, bank borrowings of the Group amounting to RMB265 million (December 31, 2016: RMB315 million) were secured by certain land use rights of RMB90 million (December 31, 2016: RMB79 million) and investment properties of RMB20 million (December 31, 2016: RMB34 million). |
| (iii) | As at December 31, 2017, bank borrowings of the Group totaling RMB99 million (December 31, 2016: Nil) were secured by certain of the other flight equipment with aggregate carrying amounts of RMB206 million (December 31, 2016: Nil). |
| (iv) | The Group issued corporate bonds with aggregate nominal value of RMB3,000 million on November 20, 2015 at a bond rate of 3.63%. The corporate bonds mature in five years. The Company will be entitled at its option to adjust its bond rate and the investors will be entitled to request the Company to redeem all or a portion of the bonds after three years of the issue date. |
The Group issued corporate bonds with aggregate nominal value of RMB5,000 million on March 3, 2016 at a bond rate of 2.97%. The corporate bonds mature in three years.
The Group issued corporate bonds with aggregate nominal value of RMB5,000 million on May 25, 2016 at a bond rate of 3.12%. The corporate bonds mature in five years. The Company will be entitled at its option to adjust its bond rate and the investors will be entitled to request the Company to redeem all or a portion of the bonds after three years of the issue date.
| (v) | Xiamen Airlines issued medium-term notes with aggregate nominal value of RMB1,300 million on August 15, 2016 at an interest rate of 2.97%. The medium-term notes mature in three years. |
Xiamen Airlines issued medium-term notes with aggregate nominal value of RMB1,600 million on October 20, 2016 at an interest rate of 3.11%. The medium-term notes mature in five years.
Xiamen Airlines issued medium-term notes with aggregate nominal value of RMB1,800 million on November 21, 2016 at an interest rate of 3.38%. The medium-term notes mature in three years.