MISC Integrated Annual Report 2020

20. OTHER FINANCIAL ASSETS AND FINANCIAL LIABILITIES (CONT’D.) (b) Derivative liabilities Group 2020 2019 RM’000 RM’000 Derivative liabilities Current: Forward currency contracts (i) 11,671 1,560 Non-current: Forward currency contracts (i) 7,572 – Interest rate swaps (“IRS”) - effective hedges (ii) 519,454 158,360 (i) As at 31 December 2020, the Group held forward currency contracts designated as hedges of future payments denominated in USD. 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 2020 was RM596.9 million (2019: RM119.0 million). (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 0.62% - 3.19% (2019: 1.79% - 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 (2019: year 2022 and year 2030). The notional amount of the IRS arrangement as at 31 December 2020 was RM10.2 billion (2019: RM7.6 billion). (c) Interest-bearing loans and borrowings Group Corporation 2020 2019 2020 2019 RM’000 RM’000 RM’000 RM’000 Short term borrowings Secured: Term loans Fixed rate 1,070,032 750,408 – – Floating rate 408,467 1,425,203 – – Revolving credits – 2,354,594 – – 1,478,499 4,530,205 – – 20. OTHER FINANCIAL ASSETS AND FINANCIAL LIABILITIES (CONT’D.) (c) Interest-bearing loans and borrowings (cont’d.) Group Corporation 2020 2019 2020 2019 RM’000 RM’000 RM’000 RM’000 Short term borrowings Unsecured: Revolving credits 342,423 755,128 342,423 755,128 Loans from subsidiaries Fixed rate – – 167,548 113,099 Floating rate – – 59,323 737,910 Lease liabilities 184,601 314,148 14,384 13,875 527,024 1,069,276 583,678 1,620,012 2,005,523 5,599,481 583,678 1,620,012 Long term borrowings Secured: Term loans Fixed rate (Note 37) 9,293,628 7,009,714 – – Floating rate 1,683,865 219,012 – – 10,977,493 7,228,726 – – Unsecured: Revolving credit 292,738 – – – Loans from subsidiaries Floating rate – – 625,522 – Lease liabilities 164,632 323,966 15,537 29,908 457,370 323,966 641,059 29,908 11,434,863 7,552,692 641,059 29,908 Total borrowings Term loans 12,455,992 9,404,337 – – Revolving credits 635,161 3,109,722 342,423 755,128 Loans from subsidiaries – – 852,393 851,009 Lease liabilities 349,233 638,114 29,921 43,783 13,440,386 13,152,173 1,224,737 1,649,920 31 December 2020 NOTES TO THE FINANCIAL STATEMENTS 31 December 2020 NOTES TO THE FINANCIAL STATEMENTS 10 402 10 403 /// Leadership / Governance / Financial Statements / Additional Information / Annual General Meeting ////// /// Leadership / Governance / Financial Statements / Additional Information / Annual General Meeting ////// Section Section MISC Berhad / Integrated Annual Report 2020 MISC Berhad / Integrated Annual Report 2020