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58 Clarity CapitaRetail China Trust Annual Report 2013
Capital
Management
As at 31 December 2013, CRCT
maintained the following debt facilities:
RMB denominated facilities –
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unsecured term loan facility
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bridge loan facility
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secured term loan facility
S$ denominated facilities –
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market line facilities
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trust term loan facility
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trust term loan facility
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trust term loan facility
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trust term loan facility
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trust term loan facility
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trust term loan facility
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trust term loan facilities
US$ denominated facility –
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market line facility
MulticurrencyMediumTermNotes –
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multicurrency Medium Term
Notes (MTN) programme
CRCT has sufficient untapped
facilities which include S$500.0
million from the MTN, term loans
facilities of S$103.0 million and
money market line facilities of
S$111.0 million and US$50.0 million.
Current gearing for CRCT is at 32.6%
(below the MAS requirement of
35%) with a total outstanding debt
of S$713.5 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.
The fair value derivative for FY 2013,
which was included as financial
derivatives in total assets and total
liabilities were S$2.0 million and
S$5.2 million respectively. This net
amount represented a negative 0.3%
of the net assets of CRCT as at 31
December 2013.
In June 2013, CRCT has successfully
refinanced majority of the debt
which matured in 2013 and kept
average cost of debt at 2.6%.
Debt maturity each year as a
percentage of total outstanding
debt as at 31 December 2013 is
as follows:
This provides a currency match
against CRCT’s assets which are
predominately denominated in RMB.
However, CRCT does not hedge
the equity largely denominated in
RMB as it is of the view that such
equity investments are long term.
CRCT will hedge the RMB cash flow
from operations if it is determined
with certainty the exact timing in
which they will be remitted back to
Singapore for distribution purpose.
As at 31 December 2013, CRCT has
hedged its non-RMB loans through
non-deliverable forwards (NDF) with
notional amount of S$526.0 million
which represent 73.7% (including
RMB denominated loans) of the total
outstanding debt.
DEBT MATURITY PROFILE 1
(S$ million)
As at 31 December 2013
1 Total debt excluding interest and upfront fees.
2 Comprise of multiple term loans drawn in Singapore at the Trust level, these include fixed and/or
floating term loan facilities.
3 Comprise of multiple floating rate money market facilities.
4 Secured loans comprise of a RMB term loan of S$106.5 million (RMB520 million) and a RMB bridge
loan of S$110.5 million (RMB540 million). Both loans are secured by a legal mortgage over CapitaMall
Grand Canyon, bear interest referenced against the 3 to 5 years People’s Bank of China (PBOC) base
lending rate and 1 year PBOC base lending rate respectively. The secured RMB term loan is payable
on a semi-annual basis from June 2014. Outstanding loan will be repaid on final maturity on 19
December 2018. The bridge loan is payable within 1 year from the drawdown date.
5 5% of the RMB term loan is repayable on a semi-annual basis, starting in 2012. The remaining 80%
of the RMB loan principal is payable in full upon maturity of the RMB term loan on 30 June 2014.
Fixed Rate CapitaMall Grand Canyon Secured-Onshore Loan 4
Variable Rate CapitaMall Grand Canyon Secured Onshore Short
Term Bridge Loan 4
Trust-Unsecured Offshore Term Loan2 CapitaMall Anzhen Unsecured-Onshore Loan 5
Trust-Unsecured Money Market Line 3 Amortisation Payment on CapitaMall Grand Canyon
Secured Onshore Term Loan
Total Debt (S$million) 713.5 276.6 93.1 105.1 55.6 183.1
% of Outstanding Debt 38.8% 13.0% 14.7% 7.8% 25.7%
39.0%
61.0% 21.0
40.0
100.0
110.5
88.0
5.1
100.0
5.1
50.5
5.1
86.1
97.0
5.1
Total Debt 2014 2015 2016 2017 2018