the planning, design, engineering, and construction of Nenggiri Hydroelectric Power Plant Project (‘Project Nenggiri’) to be undertaken by TNBPG Hydro Nenggiri Sdn. Bhd. (‘THNSB’), a special purpose vehicle set up to solely undertake Project Nenggiri. The Sustainability Sukuk Wakalah proceeds will be channelled by TPGSB to THNSB through the provision of shareholders’ loans and/or advances and/or through subscription of any equity instruments as may be agreed between the parties. NOTES TO THE FINANCIAL STATEMENTS 31 December 2023 FINANCIAL STATEMENTS Sec 5 275 26 BORROWINGS (CONTINUED) (c) Preferred Equity Certificates (‘PEC’) On 22 December 2017, Kumpulan Wang Persaraan (‘KWAP’) had provided a shareholder loan of GBP46.2 million to Vantage Solar Investments S.A.R.L (‘VSI’) through the subscription of PEC. The financial instrument bears a fixed interest rate of 8.0% per annumand will mature in 2047. Reconciliation of borrowings from financing activities during the financial year is as follows: Group Company 2023 RM’million 2022 RM’million 2023 RM’million 2022 RM’million As at the beginning of the financial year 63,882.2 51,678.2 36,231.9 25,036.3 Cash flows: - Drawdowns 10,612.3 24,921.6 5,500.0 20,475.0 - Repayments (14,185.7) (12,860.5) (12,340.5) (9,595.5) - Finance cost paid (2,860.4) (2,657.2) (1,386.6) (1,212.2) Non-cash changes: - Finance cost (Note 37(b)) 2,947.4 2,692.5 1,369.2 1,247.8 - Translation loss - foreign term loans (Note 36) 304.1 280.5 304.1 280.5 - Changes in fair value 3.3 (22.2) 0 0 - Effect of changes in foreign currencies 365.6 (173.1) 0 0 - Acquisition of subsidiaries (Note 48) 701.4 649.2 0 0 - Conversion to NCI equity (Note 7(b)) 0 (626.8) 0 0 As at the end of the financial year 61,770.2 63,882.2 29,678.1 36,231.9 27 GOVERNMENT DEVELOPMENT GRANTS Accounting Policy Grants from the government are recognised at their fair values where there is a reasonable assurance that the grants will be received and the Group will comply with all its corresponding terms and conditions. Government