NOTES TO CONDENSED CONSOLIDATED FINANCIAL INFORMATION For the six months ended 30 June 2022 26. PERPETUAL CAPITAL SECURITIES (continued) Perpetual Securities Series 001, Series 002 and Series 004 On 20 January 2022, the Group consolidated subordinated perpetual capital securities amounting to US$699,830,000 (inclusive of issuance cost and accrued dividend distribution) upon completion of the acquisition of 100% equity interests in ARA Group. These related to subordinated perpetual securities (the “perpetual securities”) with aggregate principal amounts totaling S$950,000,000 (approximately US$698,000,000) (Series 001, Series 002, Series 004 at S$300,000,000, S$300,000,000, S$350,000,000 respectively) issued by ARA Asset Management Pte Ltd on 17 July 2017 (“Series 001”), 21 June 2018 (“Series 002”) and 4 September 2019 (“Series 004”). Such perpetual securities bear distributions at a rate of 5.2% (Series 001), 5.65% (Series 002) and 5.6% (Series 004) per annum, payable semi-annually. Subject to relevant terms and conditions in the Information Memorandum dated 29 June 2017 (Series 001), 12 February 2018 (Series 002) and 4 September 2019 (series 004), ARA Group may elect to defer making distributions on the perpetual securities, and is not subject to any limits as to the number of times a distribution can be deferred. The perpetual capital securities are classified as equity instruments and recorded in equity in the consolidated statement of financial position. The perpetual securities constitute direct, unconditional, subordinated and unsecured obligations of the Issuer and shall at all times rank pari passu, without any preference or priority among themselves, and pari passu with any unsecured obligations of the Issuer. Perpetual securities Series 001 were fully redeemed on 4 May 2022. Movements of the perpetual capital securities are as follows: Principal Distribution Total US$’000 US$’000 US$’000 At 1 January 2021 – – – Issuance of perpetual capital securities 260,197 – 260,197 Direct issue costs attributable to the perpetual capital securities (3,879) – (3,879) Profit attributable to holders of perpetual capital securities – 10,664 10,664 Distribution to holders of perpetual capital securities – (5,835) (5,835) At 31 December 2021 (audited) and 1 January 2022 256,318 4,829 261,147 Acquisition of subsidiaries 699,830 – 699,830 Profit attributable to holders of perpetual capital securities – 21,181 21,181 Distribution to holders of perpetual capital securities – (23,762) (23,762) Redemption of perpetual capital securities (216,601) – (216,601) At 30 June 2022 (unaudited) 739,547 2,248 741,795 E S R G R O U P L I M I T E D I N T E R I M R E P O R T 2 0 2 2 87
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