Positioning for the Future | 67
Overview
The Group strives to maintain a prudent capital structure
and actively reviews its cashnows, debt maturity
promle and overall liquidity position on an ongoing
basis. The main sources of the Group’s operating
cashnows are derived from rental income from our
investment properties, fees and residential sales.
As part of its liquidity management to support its
funding requirements, investment needs and growth
plans, the Group actively diversimes its funding sources
by putting in place a mix of undrawn banking facilities
and capital market programmes.
The global mnancial outlook has improved but risks remain
with the lacklustre recovery in the Eurozone economies
and slower growth in China. Against this backdrop,
the Group continues to maintain a healthy balance sheet.
The Group’s total gross debt of S$16.0 billion was
marginally higher as compared to S$15.9 billion
last year. Net debt as at 31 December 2014 was
S$13.2 billion as compared to S$9.6 billion as at
December 2013. The increase in net debt was mainly
due to the cash consideration paid in the privatisation of
CMA during the year.
Finance costs for the Group were S$439.5 million for the
year ended 2014. This was about 9% lower compared to
S$481.7 million last year. Finance costs were lower as the
average interest rate and level of borrowings were both
lower in 2014. The reduction in mnancing costs is a result
of capital management initiatives undertaken in 2013.
Sources of Funding
As at year end, 51% of the Group’s total debt was funded
by bank borrowings and the balance 49% was raised
through capital market issuances. The Group continues
to seek diversimed and balanced sources of funding to
ensure mnancial nexibility and mitigate concentration risk.
Commitment of Funding
As at end 2014, the Group is able to achieve 99% of its
funding from committed facilities. The balance 1% was
funded by nexible uncommitted short term facilities.
As part of its mnancial discipline, the Group constantly
reviews its portfolio to ensure that a prudent portion
of committed funding is put in place to match the
investments’ planned holding periods. Amidst the volatile
global economic climate, committed mnancing is secured
whenever possible to ensure that the Group has sufmcient
mnancial capacity to support its operations, investments
and future growth plans.
0DWXULW\ 3URÀOH
The Group has proactively built up sufmcient cash
reserves and credit lines to enable it to meet its short
term debt obligations, support its remnancing needs and
pursue opportunistic investments. The Group maintains
a healthy balance sheet and has unutilised bank lines
of about S$5.0 billion. To ensure mnancial discipline,
the Group constantly reviews its loan promle so as to
mitigate any remnancing risks, avoid concentration and
extend its maturity promle where possible. In reviewing the
maturity promle of its loan portfolio, the Group also took
into account any divestment or investment plans, interest
rate outlook and the prevailing credit market conditions.
'HEW 0DWXULW\ 3URÀOH
(S$ billion)
Within
1 year
2 years 3 years 4 years 5 years More than
5 years
22%
14%
10%
13%
7%
34%
3.5
2.2
1.6
2.1
1.1
5.5
Sources of Funding
(S$ billion)
2010
2011
2012
Restated
1
2013
Restated
1
2014
10.4
12.2
17.5
15.9
16.0
5.7
55%
46%
46%
46% 49%
51%
54%
54%
54%
5.7
8.0
9.5
6.5
4.7
45%
8.2
8.6
7.3
7.8
Bank and Other Loans
Debt Securities
Note Convertible Bonds are renected as held till mnal maturity.
Business Review
1
Comparatives have been restated to take into account the retrospective adjustment relating to FRS 110 Consolidated Financial Statements
which require the Group to consolidate CapitaCommercial Trust, CapitaMalls Malaysia Trust and Ascott Residence Trust.
