20. OTHER FINANCIAL ASSETS AND FINANCIAL LIABILITIES (CONT'D.) (b) Derivative assets/liabilities Group 2021 2020 RM’000 RM’000 Derivative assets Non-current: Interest rate swaps (“IRS”) - effective hedges (ii) 103,039 – Derivative liabilities Current: Forward currency contracts (i) 4,701 11,671 IRS - effective hedges (ii) 52,231 – Non-current: Forward currency contracts (i) – 7,572 IRS - effective hedges (ii) 161,186 519,454 (i) As at 31 December 2021, the Group held forward currency contracts designated as hedges of future payments denominated in United States Dollars (“USD”), Euro (“EUR”) and Sterling Pounds (“GBP”). 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 2021 was RM380.1 million (2020: RM596.9 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 0.46% - 3.19% (2020: 0.62% - 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 (2020: year 2022 and year 2030). The notional amount of the IRS arrangement as at 31 December 2021 was RM11.5 billion (2020: RM10.2 billion). (c) Interest-bearing loans and borrowings Group Corporation 2021 2020 2021 2020 RM’000 RM’000 RM’000 RM’000 Short term borrowings Secured: Term loans * Fixed rate 4,598,738 1,070,032 – – Floating rate 1,127,784 408,467 – – 5,726,522 1,478,499 – – 20. OTHER FINANCIAL ASSETS AND FINANCIAL LIABILITIES (CONT'D.) (c) Interest-bearing loans and borrowings (cont'd.) Group Corporation 2021 2020 2021 2020 RM’000 RM’000 RM’000 RM’000 Short term borrowings Unsecured: Term loans Floating rate 2,156,517 – – – Revolving credits 292,067 342,423 – 342,423 Loans from subsidiaries Fixed rate – – 64,785 167,548 Floating rate – – – 59,323 Lease liabilities 134,230 184,601 14,435 14,384 2,582,814 527,024 79,220 583,678 8,309,336 2,005,523 79,220 583,678 Long term borrowings Secured: Term loans Fixed rate (Note 37) 7,211,913 9,293,628 – – Floating rate – 1,683,865 – – 7,211,913 10,977,493 – – Unsecured: Term loans Floating rate 1,408,585 – – – Revolving credit – 292,738 – – Loans from subsidiaries Fixed rate (Note 37) – – 583,331 – Floating rate – – – 625,522 Lease liabilities 99,182 164,632 638 15,537 1,507,767 457,370 583,969 641,059 8,719,680 11,434,863 583,969 641,059 Total borrowings Term loans * 16,503,537 12,455,992 – – Revolving credits 292,067 635,161 – 342,423 Loans from subsidiaries – – 648,116 852,393 Lease liabilities 233,412 349,233 15,073 29,921 17,029,016 13,440,386 663,189 1,224,737 * As the Group was unable to fulfil certain conditions in a term loan agreement, RM3,047,500,000 of the term loan was reclassified to current liabilities as the Group does not have unconditional right to defer the settlement for at least 12 months after the reporting date. The Group has options available to refinance the said term loan. NOTES TO THE FINANCIAL STATEMENTS 31 December 2021 NOTES TO THE FINANCIAL STATEMENTS 31 December 2021 MISC Berhad 382 Integrated Annual Report 2021 MISC Berhad Integrated Annual Report 2021 383 FINANCIAL STATEMENTS FINANCIAL STATEMENTS
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