153
ANNUAL REPORT 2014
27 FINANCIAL RISK MANAGEMENT (CONT'D)
Liquidity risk (cont'd)
<--------------- Cash flows ----------------->
Carrying Contractual
Within
Within More than
amount cash flows 1 year
1 to 5 years 5 years
$’000 $’000
$’000
$’000
$’000
Stapled Group
2014
Non-derivative financial liabilities
Fixed rate medium term notes
119,932 (130,258)
(3,000)
(127,258)
–
Floating rate medium term note
83,512
(85,318)
(1,064)
(84,254)
–
Variable rate bank loans
472,663 (407,661)
(403,803)
(3,858)
–
Fixed rate bank loan
98,825 (205,197)
(4,629)
(200,568)
–
Trade and other payables*
38,625
(38,625)
(38,625)
–
–
Rental deposits
8,091
(10,314)
(1,026)
(126)
(9,162)
821,648 (877,373)
(452,147)
(416,064)
(9,162)
Derivative financial instrument
Interest rate swap
581
(703)
(703)
–
–
2013
Non-derivative financial liabilities
Fixed rate medium term notes
189,673 (204,137)
(73,714)
(130,423)
–
Floating rate medium term note
83,491
(86,988)
(1,296)
(85,692)
–
Variable rate bank loans
320,484 (329,351)
(80,197)
(249,154)
–
Fixed rate bank loans
94,580 (108,376)
(2,756)
(105,620)
–
Trade and other payables*
20,920
(20,920)
(20,920)
–
–
Rental deposits
8,238
(11,287)
(1,412)
(75)
(9,800)
717,386 (761,059)
(180,295)
(570,964)
(9,800)
Derivative financial instrument
Interest rate swap
421
(193)
(438)
245
–
* Excluding rental deposits
The maturity analyses show the contractual undiscounted cashflows of the Stapled Group’s financial liabilities on
the basis of their earliest possible contractual maturity. Derivative financial instrument held is normally not closed
out prior to contractual maturity. The disclosure shows net cashflows for derivative that is net cash settled.
Derivative financial instrument is designated as cash flow hedge. The table above reflects the periods in which the
cash flows associated with cash flow hedge are expected to occur and impact the total return.
Market risk
Market risk is the risk that changes in market prices, such as interest rates and foreign exchange rates, will affect
the HBT Group's comprehensive income and H-REIT Group’s and the Stapled Group’s total return. The objective
of market risk management is to manage and control market risk exposures within acceptable parameters, while
optimising the return on risk.
NOTES TO THE FINANCIAL STATEMENTS
