20. LOANS AND BORROWINGS (continued) Breach of loan covenant In 2022, ParkwayHealth Shanghai Hospital Company Limited breached a non-financial covenant in respect of a bank loan amounting to RM514.0 million, whereby its medical licence was not obtained by 31 December 2022. Consequently, the bank loan became repayable on demand and was classified in full as a current liability as at 31 December 2022. However, the bank had not called an event of default. The medical licence was obtained on 19 January 2023 and the loan was refinanced on 4 August 2023. Unsecured fixed rate medium term notes PLife REIT has through its wholly owned subsidiary, Parkway Life MTN Pte. Ltd. (“PLife MTN”), put in place a SGD500 million Multicurrency Debt Issuance Programme, to provide PLife REIT with the flexibility to tap various types of capital market products including issuance of perpetual securities when needed. Under the Debt Issuance Programme, PLife MTN is able to issue notes while HSBC Institutional Trust Services (Singapore) Limited (in its capacity as trustee of PLife REIT) (“PLife REIT Trustee”) is able to issue perpetual securities. All sums payable in respect of the notes issued by PLife MTN are unconditionally and irrevocably guaranteed by PLife REIT Trustee. As at 31 December 2023, there are four series of outstanding fixed rate notes issued under the Multicurrency Debt Issuance Programme amounting to JPY17.8 billion (approximately RM579.6 million) (2022: JPY19.9 billion (approximately RM654.4 million)) with maturity dates between 2027 to 2030 (2022: 2023 to 2027). Loans from corporates The HKD-denominated loans from corporates are in relation to the non-controlling interest’s share of financing granted to a subsidiary, GHK. Reconciliation of movement of liabilities to cash flows arising from financing activities Bank loans Fixed rate medium term notes Loans from corporates Lease liabilities Interest payables Total Group RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 At 1 January 2022 7,477,988 431,713 937,217 2,002,534 84,951 10,934,403 Net changes from financing cash flows 425,310 253,824 – (337,144) (290,045) 51,945 Acquisition of subsidiaries 759 – – – – 759 Change in leases – – – 338,858 – 338,858 Foreign exchange movement (245,507) (31,097) 37,967 (154,268) (147) (393,052) Transfer to liabilities directly associated with assets classified as held for sale (90,113) – (52,501) (377,266) (7,815) (527,695) Other liability-related changes 13,220 – – 158,327 336,095 507,642 At 31 December 2022/1 January 2023 7,581,657 654,440 922,683 1,631,041 123,039 10,912,860 Net changes from financing cash flows (473,881) (65,645) – (256,617) (458,267) (1,254,410) Acquisition of subsidiaries 51,080 – – – – 51,080 Disposal of subsidiaries (2,777) – – – – (2,777) Change in leases – – – 367,036 – 367,036 Foreign exchange movement (357,492) (9,173) 62,138 (248,832) 24,989 (528,370) Transfer to liabilities directly associated with assets classified as held for sale (62,545) – – (2,397) – (64,942) Other liability-related changes 10,902 – – 170,260 524,355 705,517 At 31 December 2023 6,746,944 579,622 984,821 1,660,491 214,116 10,185,994 Annual Report 2023 183
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