CITIC Limited Half-Year Report 2020

127 CITIC Limited Half-Year Report 2020 For the six months ended 30 June 2020 Notes to the Consolidated Financial Statements 33 Major transactions with non-controlling interests On 6 November 2019, CITIC Envirotech Ltd. (“CITIC Envirotech”, a non-wholly-owned subsidiary of the Group listed in Singapore Exchange Limited) issued an announcement that CITIC Envirotech adopted a conditional voluntary offer to implement the delisting plan. A formal offer was issued on 3 January 2020 with approval of CITIC Envirotech General Meeting on 31 December 2019. Upon completion of the exit offer on 17 January 2020, the equity interest owned by the Group in CITIC Envirotech increased from 56.36% to 72.78%. CITIC Envirotech was delisted from the Singapore Exchange Limited on 23 January 2020. The effect of changes in the ownership interest of CITIC Envirotech on the equity attributable to shareholders of the Company during the six months ended 30 June 2020 is summarised as follows: For six months ended 30 June HK$ million Carrying amount of non-controlling interests acquired 874 Consideration paid to non-controlling interests (1,243) Loss on acquisition within equity (369) 34 Post balance sheet events (a) With the approvals of the regulatory authorities and the Board of Directors, CITIC Bank was cleared to make a public offering of RMB50 billion special financial bonds for small and micro enterprises (“Special SmE Bonds”) in the national interbank bond market. On 18 March 2020, CITIC Bank issued the 2020 Series 1 Special SmE Bonds. The funds raised will be used to provide loans to small and micro enterprises to help them overcome the difficult period caused by the covid-19 outbreak. The three-year bonds have a coupon rate of 2.75%. The Series 2 will be issued as needed, with a total amount of no more than RMB20 billion. (b) Under the approval of regulatory authorities and the Board of Directors, CITIC Bank issued RMB40 billion of Tier 2 Capital Notes on 14 August 2020. The 10-year Notes with conditional redemption right by the issuer at the end of the fifth year have a coupon rate of 3.87%. The net proceeds from the issue of the Notes will be used to boost the Tier 2 Capital of the Bank in accordance with the applicable laws and for the purposes approved by the regulatory authorities. 35 Comparative amounts Reclassifications have been made on some of the comparative amounts to ensure the comparability.