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ANNUAL REPORT 2014
27 FINANCIAL RISK MANAGEMENT (CONT'D)
Credit risk (cont'd)
Cash and fixed deposits are placed with financial institutions which are regulated. Investments and transactions
involving derivative financial instruments are allowed only with counterparties who have sound credit ratings.
At 31 December 2014 and 31 December 2013, except as described in Note 9 to the financial statements, there was
no significant concentration of credit risk. The maximum exposure to credit risk is represented by the carrying value
of each financial asset on the statement of financial position.
Liquidity risk
Liquidity risk is the risk that the Stapled Group will encounter difficulty in meeting the obligations associated with
its financial liabilities that are settled by delivering cash or another financial asset. The HBT Trustee-Manager and
H-REIT Manager monitors its liquidity risk and maintains a level of cash and cash equivalents deemed adequate
to finance the HBT Group's and the H-REIT Group’s operations and to mitigate the effects of fluctuations in cash
flows. The H-REIT Manager also monitors and observes the CIS Code issued by the MAS concerning limits on total
borrowings.
In addition, the H-REIT Group maintains the following lines of credit:
• A $100.0 million (2013: $100.0 million) committed bilateral multi-currency unsecured revolving credit facility
each from two banks (collectively $200.0 million) for a 3-year term. At the reporting date, $150.9 million
(2013: $140.0 million) has been drawn down under this facility;
• A $300.0 million (2013: $300.0 million) uncommitted multi-currency unsecured bridge loan facility with a bank.
In previous year, $76.8 million (US$60.6 million) has been drawn down under this facility. In current financial
year, the loan was refinanced and as at reporting date, $300.0 million of the facilities remained unutilised;
• A $1.0 billion Multi-Currency Medium Term Note Programme. At the reporting date, $796.4 million
(2013: $726.4 million) of the Programme remains unissued;
• A $100.3 million (A$93.2 million) (2013: $105.4 million (A$93.2 million)) unsecured term loan facility for a 3-year
term. At the reporting date, this facility was fully drawn down;
• A $99.2 million (US$75.0 million) (2013: $95.0 million (US$75.0 million)) unsecured term loan facility for a 5-year
term. At the reporting date, this facility was fully drawn down;
• A $66.7 million (JPY6.07 billion) (2013: Nil) unsecured short-term loan facilities. At the reporting date, these
facilities were fully drawn down;
• A $70.0 million (2013: Nil) unsecured term loan facility for a 5-year term. At the reporting date, this facility was
fully drawn down; and
• A $86.0 million (US$65.0 million) (2013: Nil) unsecured term loan facility for a 5-year term. At the reporting
date, this facility was fully drawn down.
NOTES TO THE FINANCIAL STATEMENTS
