My first Publication ocbc_ar17_fullreport_english | Page 200

NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 December 2017
21. DEBT ISSUED (continued)
21.4 STRUCTURED NOTES (UNSECURED) (continued)
In accordance with FRS 39 Financial Instruments: Recognition and Measurement, to the extent that the underlying economic
characteristics and risks of the embedded derivatives were not closely related to the economic characteristics and risks of the host
contract, and where such embedded derivatives would meet the definition of a derivative, the Group bifurcated such embedded
derivatives and recognised these separately from the host contracts. The bifurcated embedded derivatives were fair valued through
profit or loss, and were included as part of the Group’s derivatives in the financial statements. This accounting treatment is also
in line with the Group’s accounting policy for derivatives (Note 2.7).
21.5
COVERED BONDS (SECURED)
GROUP
Maturity date 2017
$’000 2016
$’000
21 Mar 2017 – 5 Oct 2017 21 Mar 2022 – 5 Oct 2022 1,584,295 –
Issue date
Issued by the Bank:
EUR1 billion 0.25% fixed rate covered bonds
The covered bonds were issued by the Bank under its USD10 billion Global Covered Bond Programme. The Covered Bond Guarantor,
Red Sail Pte. Ltd., guarantees the payments of interest and principal. The guarantee is secured by a portfolio of Singapore home loans
transferred from OCBC Bank to Red Sail Pte. Ltd. (Note 46.2). Interest is payable annually in arrears.
21.6
RECONCILIATION OF MOVEMENTS OF LIABILITIES TO CASH FLOW ARISING FROM FINANCING ACTIVITIES
GROUP ($’000)
Subordinated debt
Fixed and floating rate notes
Commercial papers
Structured notes
Covered bonds
198
OCBC ANNUAL REPORT 2017
1 January 2017 Cash flows
6,503,170
3,564,849
8,572,419
1,306,941
–
19,947,379 (1,521,099)
(62,296)
13,706,523
58,162
1,540,594
13,721,884
Non-cash changes
Foreign
exchange
movements
Others
(396,401)
(77,930)
(959,433)
(102,808)
(53,473)
(1,590,045)
(29,446)
(325)
61,287
26,838
97,174
155,528
31 December 2017
4,556,224
3,424,298
21,380,796
1,289,133
1,584,295
32,234,746