68 | CapitaLand Limited Annual Report 2014
Performance Overview
Available Lines by Nationality of Banks
The Group has built up an extensive and active
relationship with a network of more than 30 banks of
various nationalities. Diversity has allowed the Group
to tap on the strengths and support from the mnancial
institutions in pursuing its strategic growth and presence
globally, thus enhancing its competitiveness in core
markets and enabling the Group to develop other markets
where appropriate.
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The Group manages its mnance costs by maintaining a
prudent mix of mxed and noating rate borrowings. As at
31 December 2014, the mxed rate borrowings constituted
75% of the portfolio and the balance 25% were on
noating rate basis. As mnance costs formed an integral
component of the Group’s operating costs, a higher
percentage in mxed rate funding would offer protection
against unexpected rises in interest rates. In managing
the interest rate promle, the Group takes into account
the interest rate outlook of its loan portfolio, holding
periods of its investment portfolio, certainty of its planned
divestments and operating cashnow generated from
residential sales.
Interest Cover Ratio and Interest Service Ratio
The Interest Cover Ratio (ICR) and Interest Service Ratio
(ISR) was 7.2 and 4.6 respectively. ICR was higher at 7.2
compared to 5.7 last year, primarily attributed to lower
interest expense as a result of lower average interest
rate and debt balance. Net interest expense decreased
by around 17% to S$382.2 million for the year. ISR was
slightly lower at 4.60 compared to 4.64 last year due to
marginally lower cashnows generated from development
projects and operations.
Available Lines by Nationality of Banks
%
Singapore
41
Japan
28
China
15
Europe
7
Others
9
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(S$ billion)
Interest Cover Ratio and Interest Service Ratio
(Times)
2010
2011
2012
Restated
1
2013
Restated
1
2014
10.4
12.2
17.5
15.9
16.0
2.9
28%
34%
22%
30% 25%
75%
70%
78%
66%
4.2
3.9
13.6
8.0
7.5
72%
11.9
11.1
4.8
4.1
Fixed
Floating
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.
2010
2011
2012
Restated
1
2013
Restated
1
2014
7.6
4.5
2.7
3.3
4.6
4.6
5.7
5.3
5.7
7.2
Interest Cover Ratio
Interest Service Ratio
