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CapitaLand Limited
Annual Report 2015
Overview
Sustainability
Business
Review
Portfolio
Details
Corporate
Governance &
Transparency
Financials &
Additional
Information
Overview
The Group maintains a prudent capital structure and
actively reviews its cashflows, debt maturity profile and
overall liquidity position on an ongoing basis. The main
sources of the Group’s operating cashflows are derived
from residential sales, fees and rental income from our
investment properties and serviced residence business.
To support its funding requirements, investment needs
and growth plans, the Group actively diversifies its funding
sources by putting in place a combination of bank facilities
and capital market programmes.
The Group’s total gross debt of S$16.1 billion was
marginally higher as compared to S$16.0 billion last year.
Net debt as at 31 December 2015 was S$11.9 billion as
compared to S$13.2 billion as at 31 December 2014.
The lower net debt was mainly due to the increase in cash
and cash equivalents backed by higher sales collection
from development projects in China.
Finance costs for the Group were S$477.3 million for the
year ended 2015. This was about 9% higher compared to
S$439.5 million last year. Finance costs were higher mainly
due to the increase in the level of borrowings coupled with
a slight increase in the average interest rate in 2015.
Sources of Funding
As at year end, 53% of the Group’s total debt was funded
by bank borrowings and the balance 47% was raised
through capital market issuances. The Group continues to
seek diversified and balanced sources of funding to ensure
financial flexibility and mitigate concentration risk.
Available Lines by Nationality Of Banks
The Group has built up an extensive and active relationship
with a network of more than 30 banks of various nationalities.
Diversity has allowed the Group to tap on the strengths
and support from the financial institutions in pursuing its
strategic growth and presence globally, thus enhancing its
competitiveness in core markets and enabling the Group to
develop other markets where appropriate.
As part of its financial discipline, the Group constantly
reviews its portfolio to ensure that a prudent portion
of committed funding is put in place to match the
investments’ planned holding periods. Amidst the volatile
global economic climate, committed financing is secured
whenever possible to ensure that the Group has sufficient
financial capacity and certainty of funding to support its
operations, investments and future growth plans.
As at end 2015, the Group is able to achieve 99% of its
funding from committed facilities. The balance 1% was
funded by flexible uncommitted short term facilities.
12.2
17.5
15.9
16.0
16.1
2011
2012
Restated
1
2013
Restated
1
2014
2015
Sources of Funding
(S$ billion)
Bank and Other Loans
Debt Securities
1
Comparatives for 2012 and 2013 have been restated to take into account the retrospective adjustment relating to FRS 110
Consolidated Financial
Statements.
Available Lines by Nationality of Banks
%
Singapore
41
Japan
28
China
15
Europe
7
Others
9
54%
54%
54% 51% 53%
47%
49%
46%
46%
46%
