My first Publication ocbc_ar17_fullreport_english | Page 267

46. FINANCIAL ASSETS TRANSFERRED
46.1
ASSETS PLEDGED
GROUP
Government treasury bills and securities (Note 24)
– Singapore
– Others
Placements with and loans to banks (Note 25)
Loans and bills receivable (Note 26)
Debt securities (Note 30)
Repo balances for assets pledged
BANK
2017
$’000 2016
$’000 2017
$’000 2016
$’000
–
5,878
195,160
526,414
328,087
1,055,539 –
2,302
527,285
464,746
794,582
1,788,915 543,483
5,878
191,991
–
–
741,352 –
2,302
527,285
–
406,343
935,930
475,454 1,192,790 687,394 831,394
The fair value of financial assets accepted as collateral, which the Group is permitted to sell or re-pledge in the absence of default
is $3,929.4 million (2016: $4,760.3 million), of which $198.5 million (2016: $174.2 million) have been sold or re-pledged. The Group is
obliged to return equivalent assets.
Transactions are conducted under terms and conditions that are usual and customary to standard securities borrowing and lending
activities.
46.2 ASSETS ASSIGNED AS SECURITY FOR COVERED BONDS ISSUED (NOTE 21.5)
Pursuant to the Bank’s Global Covered Bond Programme, selected pools of Singapore home loans originated by the Bank have been
assigned to a bankruptcy-remote structured entity, Red Sail Pte. Ltd. (Note 34.7). These home loans continue to be recognised on the
Bank’s balance sheet as the Bank remains exposed to the risks and rewards associated with them.
As at 31 December 2017, the carrying value of the covered bonds in issue was $1,584 million (2016: Nil), while the carrying value of
assets assigned was $4,736 million (2016: Nil). The difference in values is attributable to an intended over-collateralisation required to
maintain the credit ratings of the covered bonds in issue, and additional assets assigned to facilitate future issuances.
47. ASSETS HELD FOR SALE
The following assets were reclassified as held for sale and are presented at their carrying amount. The Group did not recognise any
impairment loss for a write-down of the assets held for sale to fair value less costs to sell.
GROUP
Associates (Note 47.1)
Investment properties (Note 47.2)
BANK
2017
$’000 2016
$’000 2017
$’000 2016
$’000
32,843
5,716
38,559 –
28,035
28,035 –
1,590
1,590 –
1,150
1,150
47.1 ASSOCIATES
In March 2017, the Bank announced that its wholly-owned subsidiary, OCBC Wing Hang Bank Limited (“OWHB”), entered into a Share
Sale Agreement to sell its 33.33% stake comprising 140 million ordinary shares (“Sale Shares”) in the capital of Hong Kong Life Insurance
Limited (“Hong Kong Life”). The consideration for the Sale Shares is HKD2,366.7 million (approximately S$404.8 million). The completion
of the Sale Shares under the Share Sale Agreement will be conditional upon regulatory approvals.
47.2 INVESTMENT PROPERTIES
These comprise properties which the Group is disposing of, subject to terms that are usual and customary in the completion of
the sale. The transactions are not expected to have a material impact on the Group’s net earnings and net assets for the current
financial year.
BUILDING ON OUR CORPORATE STRATEGY FOR SUSTAINABLE GROWTH
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