MISC Annual Report 2019

19. OTHER FINANCIAL ASSETS AND FINANCIAL LIABILITIES (CONT’D.) (b) Derivative assets/liabilities Group 2019 2018 RM’000 RM’000 Derivative assets Non-current: Interest rate swaps (“IRS”) - effective hedges – 8,185 Derivative liabilities Current: Forward currency contracts (i) 1,560 – Non-current: IRS - effective hedges (ii) 158,360 5,836 (i) As at 31 December 2019, the Group held forward currency contracts designated as hedges of future payments denominated in United States Dollars. The forward currency contracts are being used to hedge the foreign currency risk of the highly probable forecasted transactions. The notional amount of the currency hedging arrangement as at 31 December 2019 was RM119.0 million (2018: RMNil). (ii) The Group entered into IRS arrangements to hedge certain USD term loan facilities. Under these arrangements, the Group pays fixed interest rate ranging from 1.79% - 3.19% (2018: 1.90% - 3.19%) per annum and receives cash flows at floating rates. The IRS arrangements entered by the Group mature between year 2022 and year 2030 (2018: year 2021 and year 2029). (c) Interest-bearing loans and borrowings Group Corporation 2019 2018 2019 2018 RM’000 RM’000 RM’000 RM’000 Short term borrowings Secured: Term loans Fixed rate 750,408 137,224 – – Floating rate 1,425,203 252,591 – – Revolving credits 2,354,594 – – – 4,530,205 389,815 – – 19. OTHER FINANCIAL ASSETS AND FINANCIAL LIABILITIES (CONT’D.) (c) Interest-bearing loans and borrowings (cont’d.) Group Corporation 2019 2018 2019 2018 RM’000 RM’000 RM’000 RM’000 Short term borrowings Unsecured: Term loans Fixed rate – 158,395 – – Floating rate – 4,466,867 – – Revolving credits 755,128 763,416 755,128 763,416 Loans from subsidiaries Fixed rate – – 113,099 158,395 Floating rate – – 737,910 1,126,819 Lease liabilities 314,148 – 13,875 – 1,069,276 5,388,678 1,620,012 2,048,630 5,599,481 5,778,493 1,620,012 2,048,630 Long term borrowings Secured: Term loans Fixed rate 7,009,714 1,286,279 – – Floating rate 219,012 3,039,718 – – Revolving credit – 2,186,775 – – 7,228,726 6,512,772 – – Unsecured: Term loans Fixed rate – 283,473 – – Floating rate – 475,168 – – Loans from subsidiaries Fixed rate – – – 237,592 Floating rate – – – 4,011,148 Lease liabilities 323,966 – 29,908 – 323,966 758,641 29,908 4,248,740 7,552,692 7,271,413 29,908 4,248,740 Total borrowings Term loans 9,404,337 10,099,715 – – Revolving credits 3,109,722 2,950,191 755,128 763,416 Loans from subsidiaries – – 851,009 5,533,954 Lease liabilities 638,114 – 43,783 – 13,152,173 13,049,906 1,649,920 6,297,370 NOTES TO THE FINANCIAL STATEMENTS 31 December 2019 NOTES TO THE FINANCIAL STATEMENTS 31 December 2019 FINANCIAL STATEMENTS MISC BERHAD PEOPLE. PASSION. POSSIBILITIES ANNUAL REPORT 2019 314 315