16.

Other financial liabilities

(a)

Other liabilities


	31.12.2016		31.12.2017		31.12.2017
	RMB’000		RMB’000		US$’000

Derivative not designated as hedges – foreign exchange forward contract		140		—		—
Finance lease liabilities (Note 31)		108		79		12

Total		248		79		12


	31.12.2016		31.12.2017		31.12.2017
	RMB’000		RMB’000		US$’000

Current		178		33		5
Non-current		70		46		7

Total		248		79		12

Foreign exchange forward contract

On December 21, 2016, Yuchai entered into a non-deliverable forward foreign exchange contract (“NDF”) with China Construction Bank (“CCB”) to purchase US$ 15.3 million at the forward exchange rate (RMB/US$) of 7.0439 on December 20, 2017. The Group accounted for this NDF at fair value through “other operating expense” in the statement of profit or loss.

(b)

Interest-bearing loans and borrowings


	Effective interest rate		Maturity		31.12.2016
	%				RMB’000
Current
Renminbi denominated loans		3.94		2017		753,750
USD denominated loans		3.70		2017		104,055
Singapore Dollar denominated loans⁽ⁱⁱ⁾		1.81		2017		33,616
Malaysian Ringgit denominated loans		5.90		2017		2,715

						894,136

Non-current
Malaysian Ringgit denominated loans		5.90		2020		16,270


	Effective interest rate		Maturity		31.12.2017		31.12.2017
	%				RMB’000		US$’000
Current
Renminbi denominated loans		3.99		2018		1,600,000		252,789


Non-current
Malaysian Ringgit denominated loans		5.95		2020		11,685		1,846
Singapore Dollar denominated loans⁽ⁱⁱ⁾		1.88		2020		14,656		2,316

						26,341		4,162

Note:

⁽ⁱ⁾

All loans balances as stated above do not have a callable feature.

⁽ⁱⁱ⁾

The loans comprise:


Issuer bank	Facility limit		Usage
			RMB’000
December 31, 2016
Bank of Tokyo-Mitsubishi, UFJ Ltd		S$ 30 million		16,808
Sumitomo Mitsui Banking Corporation		US$ 30 million		16,808

			33,616

December 31, 2017
Bank of Tokyo-Mitsubishi, UFJ Ltd		S$ 30 million		14,656

		US$’000		2,316

S$30.0 million credit facility with DBS Bank Ltd (“DBS”)

On May 22, 2015, the Company entered into a three year revolving uncommitted credit facility agreement with DBS with an aggregate value of S$30.0 million. Among other things, the terms of the facility required that HLA retains ownership of the special share and that the Company remain a consolidated subsidiary of HLA. The terms of the facility also included certain financial covenants with respect to the Company’s consolidated tangible net worth (as defined in the agreement) not being less than US$350 million, and the ratio of the consolidated total net debt (as defined in the agreement) to consolidated tangible net worth not exceeding 1.0 times. This arrangement was used to finance the Group general working capital requirements.

S$30.0 million credit facility with MUFG Bank Ltd, Singapore Brach (formally known as Bank of Tokyo Mitsubishi UFJ, Ltd., Singapore Branch) (“MUFG”)

On March 30, 2017, the Company entered into an unsecured multi-currency revolving credit facility agreement with MUFG for a committed aggregate value of S$30.0 million to refinance the S$30.0 million facility that matured on March 18, 2017. The facility is available for three years from the date of the facility agreement and will be used to finance the Company’s long-term general working capital requirements. Among other things, the terms of the facility require that HLA retains ownership of the Company’s special share and that the Company remains a consolidated subsidiary of HLA. The terms of the facility also include certain financial covenants with respect to the Company’s tangible net worth (as defined in the agreement) as at June 30 and December 31 of each year not being less than US$120 million and the ratio of the Company’s total net debt (as defined in the agreement) to tangible net worth as at June 30 and December 31 of each year not exceeding 2.0 times, as well as negative pledge provisions and customary drawdown requirements.

US$30.0 million credit facility with Sumitomo Mitsui Banking Corporation, Singapore Branch (“SMBC”)

On March 31, 2017, the Company entered into an uncommitted and unsecured multi-currency revolving credit facility agreement with SMBC for an aggregate value of US$30.0 million to refinance the US$30.0 million facility that matured on March 18, 2017. The facility is available for three years from the date of the facility agreement and will be utilized by the Company to finance its long-term general working capital requirements. The terms of the facility require, among other things, that HLA retains ownership of the special share and that the Company remains a principal subsidiary (as defined in the facility agreement) of HLA. The terms of the facility also include certain financial covenants with respect to the Company’s consolidated tangible net worth (as defined in the agreement) as at June 30 and December 31 of each year not less than US$200 million and the ratio of the Company’s consolidated total net debt (as defined in the agreement) to consolidated tangible net worth as at June 30 and December 31 of each year not exceeding 2.0 times, as well as negative pledge provisions and customary drawdown requirements.