Loans and borrowings

12 Months Ended

Dec. 31, 2019

29.	Loans and borrowings


	31 December 2019		31 December 2018
Non-current liabilities
Unsecured bank loans		6,092,170		7,244,992
Secured bank loans		—		1,862
Lease liabilities		1,101,303		1,026,955
Debt securities issued		5,483,921		4,845,827

		12,677,394		13,119,636

Current liabilities
Unsecured bank loans		6,712,297		6,281,855
Secured bank loans		2,415		2,318
Lease liabilities		431,752		387,001
Debt securities issued		481,869		364,735

		7,628,333		7,035,909

As at 31 December 2019, the Company has utilized, USD 225,000 (equivalent to TL 1,336,545 as at 31 December 2019) and EUR 35,000 (equivalent to TL 232,771 as at 31 December 2019) comparatively, under loan agreement signed with China Development Bank (“CDB”).

The annual interest rates of the USD and EUR denominated loans utilized as part of the EUR 750,000 loan agreement between the Company and CDB, which were LIBOR + 2.22% and EURIBOR + 2.20%, have been revised as LIBOR + 2.17% and EURIBOR + 2.15%, respectively. The updated rates are effective as of 10 April 2019. There have been no changes to the maturity or the repayment terms of the loan.

The Company signed a loan agreement of USD 150,000 with J.P.Morgan and AB Svensk Exportkredit within the framework of the insurance of the Swedish Export Credit Agency (EKN). The availability period of the loan is until April 2021, to be utilized in three equal tranches each with a maturity of 10 years. The total annual cost of the loan is LIBOR + 2.10% for the first tranche and fixed 5.35% for the second and third tranches. As at 31 December 2019, the Company has utilized USD 50,000 under this agreement.

The Company signed a loan agreement of EUR 50,000 with BNP Paribas Fortis SA/NV for general corporate purposes. The respective loan has a maturity of 3 years and 1 week and its annual cost of funding is in Euribor + 2.05%-1.85% range. Cost of funding can potentially decline to Euribor + 1.85% subject to meeting sustainability based environmental objectives set as part of the loan agreement. These objectives include recycling of electronic waste, use of solar energy for electricity consumption and reducing paper consumption through increased use of Dergilik application. As of 31 December 2019, the Company has utilized EUR 50,000 under this agreement.

As at 31 December 2019, the Company sold their debt securities issued with a total nominal value of USD 10,000 comprising portion of the debt securities issued previously added to its portfolio within the scope of the

buy-back

decisions dated 27 July 2016 and 30 January 2017.

In 2019, CMB approval has been taken on issuance of management agreement based lease certificates in accordance with capital markets legislation in the domestic market, in Turkish Lira terms, at an amount of up to TL 500,000, on various dates and at various amounts without public offering, as private placement and/or to be sold to institutional investors. As at 8 October 2019, the Company has issued management agreement based lease certificates through Halk Yatırım amounting TL 150,000 with the maturity of 4 February 2020.

Terms and conditions of outstanding loans are as follows:


					31 December 2019					31 December 2018
	Currency		Interest rate type		Nominal interest rate	Payment period		Carrying amount		Nominal interest Rate	Payment period		Carrying amount
Unsecured bank loans		EUR		Floating	Euribor+1.3%-Euribor+2.2%		2020-2026		5,638,726	Euribor+1.2%-Euribor+3.4%		2019-2026		6,975,890
Unsecured bank loans		USD		Floating	Libor+1.5%-Libor+2.2%		2020-2028		4,478,457	Libor+2.0%-Libor+4.1%		2019-2026		4,589,157
Unsecured bank loans		TL		Fixed	9.5%-11.5%		2020		1,442,818	12.6%-25.0%		2019		873,914
Unsecured bank loans		UAH		Fixed	11.5%-18.0%		2020		1,043,883	21.5%-22.5%		2019		894,511
Unsecured bank loans		RMB		Fixed	5.5%		2020-2026		200,583	5.5%		2019-2026		193,375
Secured bank loans (*)		BYN		Fixed	11.5%		2020		2,415	12.0%-16.0%		2019-2020		4,180
Debt securities issued		USD		Fixed	5.8%		2020-2028		5,810,989	5.8%		2019-2028		5,135,565
Debt securities issued		TL		Fixed	14.0%		2020		154,801	24.5%		2019		74,997
Lease liabilities		EUR		Fixed	1.0%-7.9%		2020-2031		162,786	1.0%-7.9%		2019-2031		194,645
Lease liabilities		TL		Fixed	12.8%-45.0%		2020-2048		735,211	16.1%-45.0%		2019-2048		719,718
Lease liabilities		USD		Fixed	3.9%-10.8%		2020-2027		18,564	3.9%-10.8%		2019-2027		40,351
Lease liabilities		UAH		Fixed	16.6%-24.0%		2020-2067		521,496	16.6%-24.0%		2019-2067		418,390
Lease liabilities		BYN		Fixed	11.7%-15.0%		2020-2028		94,998	12.0%-15.0%		2019-2028		40,852

									20,305,727					20,155,545

(*)

Belarusian Telecom pledged certain property, plant and equipment to secure these bank loans. Also, these bank loans are secured by the Government of the Republic of Belarus (Note 37).