McConnell Dowell 2019 Annual Review

77 Annual Review 2019 17(a) The Group has entered into finance facilty with the United Overseas Bank (UOB) for the provision of working capital funding, The interest rate is 2% above BBSY. 17(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 2.5 years with an average cost of funding of approximately 1.5%. The leases have no terms of renewal and no obligation to repurchase. Finance lease obligations are secured against the equipment purchased. 17(c) A loan secured over a tunnel boring machine was obtained from BNZ in New Zealand during the year. The interest rate is 6.95% and commenced in June 2019. 17(d) During the 2019 financial year the group entered into a short term financing arrangement to finance Microsoft products. 17(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. 17(f) In April 2017 the Group entered into an Equipment Chattel Mortgage. The term of the obligation is 4 years with a fixed cost of funding of 5.45%. The mortgage is secured against the equipment purchased. 17(g) In June 2017 the Group entered into an Equipment Chattel Mortgage. The term of the obligation is 3 years with a fixed cost of funding of 4.58%. The mortgage is secured against the equipment purchased. 17(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. 17(i) In April 2018 the Group entered into a 100 day loan to finance fabricated steel procured from China. The interest rate was 4.63%. It was repaid in July 2018. Information regarding foreign exchange, interest rate and liquidity risk exposures are set out in Note 22.