ESR IR 2021 - EN

19 ESR Interim Report 2021 Management Discussion and Analysis LIABILITIES Total bank and other borrowings as of 30 June 2021 were US$3.8 billion compared to US$3.3 billion at December 2020. With cash balance of US$1.1 billion, the net debt to total assets as at 30 June 2021 were 30.6% (31 December 2020: 23.2%). Additional borrowings were drawn mainly to fund the Group’s investments and ongoing development. During the year, the Company entered into the following borrowings with diversified funding sources: • In March 2021, ESR issued S$200 million (approximately US$148.6 million) NC5 fixed rate perpetual resettable step-up subordinated securities at a distribution rate of 5.65% (“ Perpetual Securities NC5 5.65% ”) under its US$2.0 billion Multicurrency Debt Issuance Programme. In June 2021, ESR issued a further tranche within the Perpetual Securities NC5 5.65% amounting to S$150 million (approximately US$111.6 million), bringing the aggregate total amount to S$350 million (approximately US$260.2 million). • In April 2021, ESR entered into US$400 million (with a US$100 million incremental option) unsecured term loan facility which consists of a three-year tranche of US$267 million at Libor plus 2.75% and a five-year tranche of US$133 million at Libor plus 3.25%. As of 30 June 2021, the Group’s weighted average debt maturity was approximately 4 years (31 December 2020: 3 years). TOTAL EQUITY Total equity increased from US$3.8 billion as of 31 December 2020 to US$4.2 billion as of 30 June 2021, primarily from net profit for the period of US$229.7 million and US$256.3 million (net of issuance costs) from the Perpetual Securities NC5 5.65%, with an aggregate principal amount of S$350 million (approximately US$260.2 million). The above increases are partially offset by decreases contributed by: (1) translation exchange difference of US$36.3 million mainly from the Group’s Japan and South Korean operations arising from strengthening of US dollars against Japanese Yen and South Korean Won during the period; and (2) mark-to-market of US$20.9 million from the Group’s investment in listed securities (classified as financial assets at fair value through other comprehensive income). ESR Shanghai Yurun I and II Logistics Park, Qingpu District, Shanghai, China