Year ended December 31, 2019
13. Long-term borrowings:
Long-term borrowings comprise:
| 2019 | 2018 | |||
|---|---|---|---|---|
| Debentures payable | $ | 103,000 | $ | 103,000 |
| Less: debt issuance costs | (517) | (530) | ||
| $ | 102,483 | $ | 102,470 |
Senior unsecured debentures, which have a maturity date of November 6, 2042, and bearing interest at a rate of 4.134% per annum, were issued on November 6, 2012. Interest is payable in equal semi-annual instalments, in arrears, on May 6 and November 6 each year commencing May 6, 2013, until maturity. The debentures are represented by a single Global Debenture Certificate registered in the name of CDS & Co. In order to put the debentures in place, the Corporation incurred debt issuance costs in the amount of $601. The debentures require semi-annual interest payments only to 2042 of $2,129, with a final principal payment of $103,000 due November 6, 2042.
The Corporation incurred interest expense in respect of the debentures of $4,258 (2018 - $4,258), which is recognized as part of finance expense on the consolidated statement of income.
The Commission is a guarantor of $52,000 in relation to the debentures and is a borrower of that same amount from WCUL pursuant to a revolving credit agreement also entered into on November 6, 2012. The Commission is obligated to make due and punctual payments of the principal and applicable interest on each debenture on their due dates, on maturity, on redemption or on acceleration.