The loan notes issued represent the discounted value of capital guaranteed to investors on the structured products issued by the subsidiary.

The loan notes were unsecured and interest free. The loan notes for 2020 and 2019 were capital protected contracts and represented the discounted value of the capital of investors, subject to the credit risk of the issuer.

Interest on unsecured subordinated bonds denominated in MUR ranges between 5.85% to 7.00% for 2019 while USD-denominated bonds bear interest between 4.19% to 6.67% for 2019.

The table below details changes in the Group’s and the Bank’s liabilities arising from financing activities, including both cash and non-cash changes. Liabilities arising from financing activities are those for which flows were, or future cash flows will be, classified in the statement of cash flows from financing activities.