Unsecured senior notes

12 Months Ended

Dec. 31, 2019

. Unsecured senior notes

In April 2016, the Company issued unsecured senior notes with two maturity dates for an aggregate principal amount of US$1,000,000. Listed on the Singapore Stock Exchange, these notes are both fixed rate notes and senior unsecured obligations, with interest payable semi-annually in arrears on and of each year, beginning on October 29, 2016.

A summary of the Company’s unsecured senior notes as of December 31, 2017, 2018 and 2019 is as follows:


	As of December 31,						Effective interest rate
	2017		2018		2019		Effective interest rate
	RMB		RMB		RMB
US$500,000 3.125% notes due 2021		3,242,565		3,413,264		3,477,276		3.37	%
US$500,000 3.875% notes due 2026		3,204,792		3,372,879		3,435,216		4.15	%

Carrying value		6,447,357		6,786,143		6,912,492
Unamortized discount and debt issuance costs		86,843		77,057		63,708

Total principal amounts of unsecured senior notes		6,534,200		6,863,200		6,976,200

The unsecured senior notes were issued at a discount amounting to RMB79,289. The debt issuance costs of RMB35,727 were presented as a direct deduction from the principal amount of the unsecured senior notes in the consolidated balance sheets. The effective interest rates for the unsecured senior notes include the interest charged on the notes as well as amortization of the debt discounts and debt issuance costs.

The unsecured senior notes contain covenants including, among others, limitation on liens, consolidation, merger and sale all or substantially all of the Company’s assets. The notes will rank senior in right

of payment to all of the Company’s existing and future obligations expressly subordinated in right

of payment to the notes and rank at least equal in right

of payment with all of the Company’s existing and future unsecured and unsubordinated obligations (subject to any priority rights pursuant to applicable law).

The proceeds from issuance of the unsecured senior notes were used for general corporate purposes.

As of December 31, 2019, the principal of the unsecured senior notes of RMB3,488,100 and RMB3,488,100 will be due in 2021 and 2026, respe

ctively

, and the aggregate amounts repayable of RMB3,488,100 and RMB3,488,100 were within a period of more than one year but not exceeding two years and within a period of more than five years, respectively.