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Annual Report 2015
27 FINANCIAL INSTRUMENTS (CONT’D)
Credit risk (cont’d)
Cash and cash equivalents
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.
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 monitor their liquidity risk and maintain 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 $250.0 million (2014: $200.0 million) committed bilateral multi-currency unsecured revolving credit facility from
two banks (comprising $150.0 million for a 3-year term and another $100.0 million for a 3.25-year term). At the
end of the financial year, $149.0 million (2014: $150.9 million) has been drawn down under this facility;
• A $300.0 million (2014: $300.0 million) uncommitted multi-currency unsecured bridge loan facility with a bank.
At the end of the financial year, $164.4 million (2014: $300.0 million) of the facilities remained unutilised;
• A $1.0 billion Multi-Currency Medium Term Note Programme. At the end of the financial year, $796.4 million
(2014: $796.4 million) of the Programme remains unissued;
• A $70.0 million (2014: $70.0 million) unsecured term loan facility for a 5-year term. At the end of the financial year,
this facility was fully drawn down;
• A $95.7 million (A$93.2 million) (2014: $100.3 million (A$93.2 million)) unsecured term loan facility which was
re-financed in December 2015 with a fresh 5-year term (2014: 3-year term). At the end of the financial year,
this facility was fully drawn down;
• A $105.8 million (US$75.0 million) (2014: $99.2 million (US$75.0 million)) unsecured term loan facility for a 5-year
term. At the end of the financial year, this facility was fully drawn down;
• A $91.7 million (US$65.0 million) (2014: $86.0 million (US$65.0 million)) unsecured term loan facility for a 5-year
term. At the end of the financial year, this facility was fully drawn down; and
• A $38.3 million (JPY3.3 billion) unsecured term loan facility and a $36.3 million (JPY 3.1 billion) secured TMK bond
for a 5-year term (2014: $66.7 million (JPY 6.07 billion)). At the end of the financial year, both facilities were fully
drawn down to repay its short-term bridging loan (Note 12 (i) and 12 (iii)(f)).
NOTES TO THE FINANCIAL STATEMENTS
