Page 56 - Report_to_Unitholders_2012

Capital
Management
Key Financial Indicators
As at 31
December
2012
Unencumbered Assets to Assets as % of
Total Assets
100%
Gearing 1 28.0%
Net Debt / EBITDA (times)2 4.7
Interest Coverage (times)3 8.5
Average Term to Maturity (Years) 1.39
Average Cost of Debt 4 2.6%
1The gearing is calculated based on total outstanding debts over the
total assets. Total assets included the hedging effects on the net assets
denominated in Renminbi (“RMB”).
2Net Debt comprises gross debt less transaction costs and EBITDA refers
to earnings before interest, tax, depreciation and amorisation excluding
change in fair value of fnancial derivatives, investment properties and
unrealised foreign exchange gain/(loss).
3Ratio of net income before change in fair value of fnancial derivative,
investment properties and unrealised foreign exchange gain/(loss) at CRCT
Group over interest expense from FY 2012.
4Ratio of interest expense over weighted average borrowings.
Borrowings
As at 31
December
20121
S$ million
Unsecured (RMB) Onshore Term Loan2 22.3
Unsecured (Non-RMB) Offshore Term
Loans3 388.5
Unsecured short-term loans 55.0
Total Borrowings at CRCT group 465.8
1 Total borrowings excluding interest and upfront fees.
2 20% of the original RMB loan principal of RMB128.0 million is repayable
on a semi-annual basis in equal instalments starting in 2012 and the
remaining 80% is repayable in full upon maturity of the RMB term loan on
30 June 2014.
3 Comprise S$100.503 million, S$100 million, S$88 million, S$50 million,
and S$50 million fxed/foating rate trust term loan facilities.
InApril 2012,CRCTestablishedaS$500.0millionmulticurrency
Medium Term Note (MTN) programme which adds to the
following existing debt facilities available for CRCT:
• the RMB115.2 million three-year unsecured term
loan facility
• the S$88.0 million three-year trust term loan facility
• the S$100.5 million three-year trust term loan facility
• the S$50.0 million three-year trust term loan facility
• the S$100.0 million four-year trust term loan facility
• the S$50.0 million four-year trust term loan facility
• the S$151.0 million money market line facilities
• the US$50.0 million money market line facility
CRCT has suffcient untapped facilities which include
S$500.0 million from the MTN, and money market line
facilities of S$96.0 million and US$50.0 million. CRCT’s
gearing as at 31 December 2012 was at a healthy 28.0%,
way below the MAS requirement of 35%, with a total
outstanding debt of S$465.8 million.
CRCT’s effective capital management includes hedging
its currency and interest rate risk exposures. Other than
the natural hedge where loans were borrowed in RMB,
CRCT also hedges its non-RMB denominated loans. This
provides a currency match against CRCT’s assets which
are predominately denominated in RMB. The fair value
derivative for FY 2012, which was included as fnancial
derivatives in total assets, was S$16.4 million and total
liabilities was S$2.4 million. This represented 1.4% of the
net assets of CRCT as at 31 December 2012.
In February 2012, CRCT successfully refnanced themajority
of our debt which matured in 2012 and kept our average
cost of debt in line with last year’s at 2.6%.
As at 31 December 2012, 44.6% or S$207.9 million of
CRCT’s debt will mature in 2013. CRCT has already
started discussions with banks and is confdent of securing
refnancing. The Manager will continue to adopt a prudent
and proactive approach to capital management.
The loan maturity profle for CRCT as at 31 December 2012
was as follows:
S$ million
% of
Outstanding
Debt
2013 207.9 44.6
2014 119.9 25.7
2015 88.0 19.0
2016 50.0 10.7
loan maturity
profile
(as at 31 december 2012)
Strengthening Fundamentals, Building a Sustainable Future 54