Page 132 - China Mobile Limited - Annual Report 2012

China Mobile Limited
Annual Report 2012
126
Notes to the Financial Statements
(Expressed in Renminbi unless otherwise indicated)
31 Interest-Bearing Borrowings
(a) The Group
As at
31 December
2012
As at
31 December
2011
Note RMB million RMB million
Bonds (i) 4,986 4,984
Deferred consideration payable (ii) 23,633 23,633
28,619 28,617
All of the above interest-bearing borrowings are unsecured and are not expected to be settled within one year.
(i) As at 31 December 2012, the bonds represent the balance of fifteen-year guaranteed bonds (“Fifteen-year
Bonds”) issued by Guangdong Mobile, a subsidiary of the Company, with a principal amount of
RMB5,000,000,000, at an issue price equal to the face value of the bonds. The bonds bear interest at the
rate of 4.5% per annum and payable annually. The bonds, redeemable at 100% of the principal amount,
will mature on 28 October 2017.
The Company has issued a joint and irrevocable guarantee (the “Guarantee”) for the performance of the
bonds. CMCC, the ultimate holding company, has also issued a further guarantee in relation to the
performance by the Company of its obligations under the Guarantee.
(ii) As at 31 December 2012, the deferred consideration payable represents the balance of the deferred
consideration of RMB9,976,000,000 and RMB13,657,000,000 payable to immediate holding company in
respect of the acquisitions of subsidiaries in 2002 and 2004 respectively. The balances are due on 1 July
2017 and 1 July 2019, respectively.
The deferred consideration payable is unsecured and bears interest at the rate of two-year US dollar LIBOR
swap rate per annum (for the year ended 31 December 2012: 0.560% to 0.644% per annum; for the year
ended 31 December 2011: 1.123% to 1.238% per annum). The balances are subordinated to other senior
debts owed by the Company from time to time. The Company may make early payment of all or part of the
balances at any time before the maturity date without penalty.