MISC Annual Report 2019

19. OTHER FINANCIAL ASSETS AND FINANCIAL LIABILITIES (CONT’D.) (c) Interest-bearing loans and borrowings (cont’d.) The secured term loans and revolving credits are secured by mortgages over certain ships, together with charter agreements and insurance of the relevant assets as well as retention accounts. The carrying values of the ships pledged and retention accounts restricted for use are stated in Note 13(a) and Note 23 respectively. The range of interest rates as at the reporting date of the above interest-bearing loans and borrowings are as follows: Group Corporation 2019 2018 2019 2018 % % % % Fixed rate Term loans 2.90-4.44 2.90-4.44 – – Loans from subsidiaries – – 3.00 3.33 Lease liabilities 3.49-6.83 – 3.49 – Floating rate Term loans 2.91-3.41 3.56-4.31 – – Revolving credits 2.48-2.91 3.38-3.56 2.48-2.66 3.38-3.56 Loans from subsidiaries – – 2.56 3.31-4.19 19. OTHER FINANCIAL ASSETS AND FINANCIAL LIABILITIES (CONT’D.) (c) Interest-bearing loans and borrowings (cont’d.) Changes in liabilities arising from financing activities: Group Term Revolving Lease Loans Credits Liabilities Total RM’000 RM’000 RM’000 RM’000 At 1 January 2019 10,099,715 2,950,191 – 13,049,906 Effect of adoption of MFRS 16 – – 987,881 987,881 At 1 January 2019 (restated) 10,099,715 2,950,191 987,881 14,037,787 Drawdown/Addition 5,388,187 187,111 178,866 5,754,164 Repayment (5,992,531) (1,500) (489,946) (6,483,977) Amortisation of upfront fees 12,496 7,963 – 20,459 Transaction cost paid (1,919) – – (1,919) Accretion of interest (Note 9(b)) – – 42,112 42,112 Termination of lease contract – – (75,465) (75,465) The effect of changes in foreign exchange rates (101,611) (34,043) (5,334) (140,988) At 31 December 2019 9,404,337 3,109,722 638,114 13,152,173 Corporation Loans from Revolving Lease subsidiaries Credits Liabilities Total RM’000 RM’000 RM’000 RM’000 At 1 January 2019 5,533,954 763,416 – 6,297,370 Effect of adoption of MFRS 16 – – 54,581 54,581 At 1 January 2019 (restated) 5,533,954 763,416 54,581 6,351,951 Drawdown/Addition 859,944 – 2,429 862,373 Repayment (2,093,029) – (15,051) (2,108,080) Liquidation of a subsidiary (Note 16) (3,438,308) – – (3,438,308) Accretion of interest (Note 9(b)) – – 1,763 1,763 The effect of changes in foreign exchange rates (11,552) (8,288) 61 (19,779) At 31 December 2019 851,009 755,128 43,783 1,649,920 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 316 317