ESR AR 2019 EN

Notes to the Consolidated Financial Statements 31 December 2019 203 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS ESR Annual Report 2019 31. REDEEMABLE CONVERTIBLE PREFERENCE SHARES The redeemable convertible preference shares have a par value of USD0.001 per share, and carried a coupon rate of 4.5% per annum. The holders are entitled to convert the redeemable convertible preference shares into the Company’s ordinary shares based on conversion ratio of 1:1 under certain circumstances. In September 2019, the Company redeemed 112,865,513 redeemable convertible preference shares and issued 32,714,642 ordinary shares upon conversion of redeemable convertible preference shares. In November 2019, the Company redeemed 73,607,943 redeemable convertible preference shares and issued 16,357,320 ordinary shares upon conversion of redeemable convertible preference shares. The preference shares have been split into the liability and equity components as follows: Liabilities component Equity component Total USD’000 USD’000 USD’000 At 1 January 2018 264,199 37,132 301,331 Interest accretion of the liability component 45,610 – 45,610 Interest paid (13,031) – (13,031) At 31 December 2018 and 1 January 2019 296,778 37,132 333,910 Conversion of redeemable convertible preference shares (67,633) (7,914) (75,547) Redemption of redeemable convertible preference shares (228,000) (29,218) (257,218) Interest accretion of the liability component 37,865 – 37,865 Interest paid (39,010) – (39,010) At 31 December 2019 – – –