CITIC Limited Half-Year Report 2019

92 CITIC Limited Half-Year Report 2019 For the six months ended 30 June 2019 26 Debt instruments issued (continued) Notes (continued): (e) Certificates of interbank deposit issued As at 30 June 2019, CITIC Bank issued certain certificates of interbank deposit with a total value of RMB357,587 million (approximately HK$406,506 million) (31 December 2018: RMB341,310 million (approximately HK$389,534 million)). The yield ranges 2.75% to 3.85% per annum (31 December 2018: 2.80% to 4.86% per annum). The original expiry terms are between 3 months to 1 year (31 December 2018: between 1 month to 1 year). (f) Convertible corporate bonds As approved by the relevant regulatory authorities in China, CITIC Bank made a public offering of RMB40,000 million (HK$46,824 million) A-share convertible corporate bonds (the “convertible bonds”) on 4 March 2019, of which RMB26,388 million (HK$30,890 million) has been subscribed by another subsidiary of the Group. The convertible bonds have a term of six years from 4 March 2019 to 3 March 2025, at coupon rates of 0.3% for the first year, 0.8% for the second year, 1.5% for the third year, 2.3% for the fourth year, 3.2% for the fifth year and 4.0% for the sixth year. The conversion of these convertible bonds begins on the first trading day (8 March 2019) after six months upon the completion date of the offering until the maturity date (from 11 September 2019 to 3 March 2025). As at 30 June 2019, RMB13,612 million (HK$15,473 million) convertible bonds were recorded in debt instruments issued and reserves respectively. 27 Share capital, perpetual capital securities and reserves (a) Share capital As at 30 June 2019, the number of ordinary shares in issue of the Company was 29,090,262,630 (31 December 2018: 29,090,262,630). (b) Perpetual capital securities In May 2013, the Company issued perpetual subordinated capital securities (the “perpetual capital securities”) with a nominal amount of US$1,000 million (approximately HK$7,800 million). These securities are perpetual and the distribution payments can be deferred at the discretion of the Company. Therefore, the perpetual capital securities are classified as equity instruments and recorded in equity in the consolidated balance sheet. On 21 November 2018, the perpetual capital securities of US$1,000 million were redeemed by the Company. (c) Capital management The Group’s primary objectives when managing capital are to safeguard the Group’s stability and growth, so that it can continue to provide returns for shareholders. The Group actively and regularly reviews and manages its capital structure, with reference to such financial ratios like debt (total of debt instruments issued and bank and other loans) to total equity ratio, to maintain a balance between the higher shareholders’ returns that might be possible with of borrowings obtained and the advantages and security afforded by a sound capital position, and makes adjustments to the capital structure in light of changes in economic conditions. Certain subsidiaries under the financial services segment are subject to capital adequacy requirements imposed by the external regulators. There was no non-compliance of capital requirements as at 30 June 2019 (31 December 2018: Nil). Notes to the Consolidated Financial Statements