| 13 | FINANCE COSTS |
| 2017 | 2016 | 2015 | ||||||||||
| RMB million | RMB million | RMB million | ||||||||||
|
Interest on bank borrowings |
1,590 | 1,529 | 1,613 | |||||||||
|
Interest relating to obligations under finance leases |
1,845 | 1,349 | 867 | |||||||||
|
Interest relating to post-retirement benefit obligations (note37) |
98 | 88 | 114 | |||||||||
|
Interest on bonds and debentures |
381 | 359 | 483 | |||||||||
|
Interest relating to interest rate swap contracts (note 39(a)) |
63 | 122 | 128 | |||||||||
|
Less: amount capitalized into advanced payments on acquisition of aircraft (note (a)) (note21) |
(793 | ) | (749 | ) | (1,014 | ) | ||||||
|
amounts capitalized into construction in progress (note (a)) |
— | — | (2 | ) | ||||||||
|
|
|
|
|
|
|
|||||||
| 3,184 | 2,698 | 2,189 | ||||||||||
|
Foreign exchange difference, net (note (b)) |
— | 3,574 | 4,987 | |||||||||
|
|
|
|
|
|
|
|||||||
| 3,184 | 6,272 | 7,176 | ||||||||||
|
|
|
|
|
|
|
|||||||
Notes:
| (a) | The average interest rate used for interest capitalization was 3.40% per annum for the year ended December 31, 2017 (2016: 3.25%, 2015: 3.09%). |
| (b) | The exchange income and losses were primarily related to the translation of the Group’s foreign currency denominated borrowings and obligations under finance leases. |