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ESR Group Limited Annual Report 202433STRATEGIC REPORTSCORPORATE GOVERNANCEFINANCIAL STATEMENTSThe weighted average debt maturity was 3.3 years (31 December 2023: 5.2 years), based on total debt drawn. Asat31December2024,17%oftheGroup%u2019sborrowingswere on a fixed-rate basis, while the remaining 83% was on a floating-rate basis. The Group%u2019s gearing stood at 35.3%. With ongoing capital recycling of balance sheet assets and non-core divestments totaling approximately US$2.7billion,theGroupremainscommittedtoreducingits gearing.Capital management and liquidity have been further strengthened with the securing of a US$2.5 billion sustainability-linked loan. As at 31 December 2024, the Group%u2019s total cash balances and committed loan facilities amounted to approximately US$4.0 billion, with a weighted average debt maturity of 5.0 years. As at 31 December 2024, the Group had cash balances of US$0.9 billion that were primarily denominated in AUD, HKD, JPY, KRW, RMB, SGD and USD.The Group is exposed to foreign exchange rate fluctuations primarily through its investments and income from subsidiaries, associates and joint ventures in regions including Greater China, Japan, South Korea, Australia, Singapore and India. To manage and minimise these foreign currency exposures, the Group borrows in local currencies at both project and corporate levels (natural hedging), thereby reducing the impact of currency fluctuations.The operating and development activities of each country are primarily funded through project-level debts and operating income in their respective local currencies. At corporate level, the Group funds some of its investments through corporate borrowings in the currency of the country where the investment is located.The Group monitors closely the interest and exchange rate movements and continues to evaluate the use of financial derivatives, where appropriate, to further mitigate these exposures.CHARGE OF ASSETSAs at 31 December 2024, certain of the Group%u2019s assets were pledged to secure bank and other borrowings granted to the Group. The information of the carrying value of assets charged are disclosed in Note 25 to the Consolidated Financial Statements. Except for the aforementioned charges, all the Group%u2019s assets are free from any encumbrances.CONTINGENT LIABILITIESAs at 31 December 2024, neither the Group nor the Company had any significant contingent liabilities.Capital ManagementESR adopts a proactive and disciplined approach to capital management, regularly reviewing its liquidity position, debt maturity profile, and refinancing strategies ahead of maturity. The Group maintains a well-capitalised balance sheet and actively diversifies its funding sources through a combination of facilities from both local and international banks, as well as capital market issuances, optimising its cost of debt. It remains disciplined in executing its capital recycling program and redeploy capital prudently to support growth.Additionally, the Group continues to leverage its fund management platform to unlock value and generate higher recurring fund management fees, significantly enhancing its tangible return on equity while ensuring sufficient funding capacity across the organisation.6261,6672,6971,15810%27%19%44%2025 2026 2027 2028 and beyondDebt Maturity Profile (US$ million)As of 31 December 202427%26%4%4%3%17%5%14%USDAs of 31 December 2024JPYHKDKRWOthersRMBAUDUS$914SGDmillionCash and Bank Balances30%24%1%1%20%11%13%SGDJPYAUDOthersHKDRMBUSDUS$6.1billionDebt Currency ProfileAs of 31 December 2024