(i) Loan notes

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

The loan notes are unsecured and interest free. The loan notes for 2019 and 2018 were capital protected contracts and represented the discounted of the capital of investors, subject to the credit risk of the issuer.

(ii) Unsecured subordinated bonds

Interest on unsecured subordinated bonds denominated in MUR ranges between 5.85% to 7.00% for 2019 and between 6.35% to 8.50% for 2018 while USD-denominated bonds bear interest between 4.19% to 6.67% for 2019 and between 4.19% to 6.02% for 2018.

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.