ESR AR 2019 EN

Notes to the Consolidated Financial Statements 31 December 2019 169 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS ESR Annual Report 2019 7. FINANCE COSTS 2019 2018 USD’000 USD’000 Interest expense on bank loans 85,244 39,603 Interest expense on other borrowings (note (i)) 21,616 21,718 Interest expense on bonds 37,507 – Interest expense on lease liabilities 1,897 428 Interest on redeemable convertible preference shares (note (ii)) 37,865 45,610 184,129 107,359 Less: Interest capitalised 3,761 2,430 180,368 104,929 Notes: (i) For the years ended 31 December 2019, interest expense on other borrowings includes interest expense for USD300 million notes issued by the Company to Hana Private Real Estate Investment Trust No. 16 and No. 17 (“Hana Notes”) amounted to USD17,722,000 (2018: USD20,775,000). The Company had fully repaid Hana Notes on 6 November 2019. (ii) For the years ended 31 December 2019, interest on redeemable convertible preference shares includes dividend on redeemable convertible preference shares amounting to USD9,932,000 (2018: USD12,960,000), and costs associated with the equity element of the Class C Preference Shares amounting to USD27,933,000 (2018: USD32,650,000). The Company had redeemed in full previously unconverted Class C Preference Shares on 6 November 2019. 8. DIRECTORS’ AND CHIEF EXECUTIVE’S REMUNERATION Directors’ and chief executive’s remuneration for the year, disclosed pursuant to the Listing Rules, section 383(1)(a), (b), (c) and (f) of the Hong Kong Companies Ordinance and Part 2 of the Companies (Disclosure of Information about Benefits of Directors) Regulation, is as follows: 2019 2018 USD’000 USD’000 Fees 70 – Other emoluments: Consulting fee (note (i)) 6,392 3,846 Salaries, allowances and benefits in kind 1,511 765 Equity-settled share option expense (note (ii)) 5,333 7,599 Pension scheme contributions 15 38 13,251 12,248 13,321 12,248 Notes: (i) The fees represent the consulting fee paid by the Group to Redwood Consulting (Cayman) Limited (“Redwood Consulting”) and other entities that are associated with the executive directors. (ii) These equity-settled share options are granted to Redwood Consulting and an entity associated with Mr. Jinchu Shen.