McConnell Dowell 2020 Annual Review

85 Annual Review 2020 15(a) The Group had entered into finance facility with the United Overseas Bank (UOB) for the provision of working capital funding, The interest rate is 2% above BBSY. 15(b) The Group has entered into finance lease agreements in Singapore for the sale and leaseback of construction equipment. The term of the obligation is average 4 years with an average cost of funding of approximately 3.2%. The leases have no terms of renewal and no obligation to repurchase. Finance lease obligations are secured against the equipment purchased. 15(c) Loans secured over tunnel boring machines obtained from BNZ in New Zealand. The interest rate is 6.95%. 15(d) During the 2020 financial year the group entered into a short term financing arrangement to finance Microsoft products. 15(e) In August 2016 the Group entered into an Equipment Chattel Mortgage. The term of the obligation is 4 years with a fixed cost of funding of 7.00%. The mortgage is secured against the equipment purchased. 15(f) In August 2017 the Group entered into an Equipment Chattel Mortgage. The term of the obligation is 5 years with a fixed cost of funding of 5.68%. The mortgage is secured against the equipment purchased. 15(g) T he Group entered into Equipment Chattel Mortgages. The term of the obligation is 3.5 years with a fixed cost of funding of 5.67%. The mortgage is secured against the equipment purchased. 15(h) In November 2016 the Group entered into a secured loan agreement in Indonesia. The term of the obligation is 4 years with a fixed cost of funding of 4.6%. The loan has no terms for renewal, and has an option for the drawdown of further funds. The loan obligation is secured against land & building held. Information regarding foreign exchange, interest rate and liquidity risk exposures are set out in Note 20.