As at 31 December 2014, CRCT maintains the following debt facilities:
RMB denominated facility
• the RMB495.0 million five-year secured term loan facility
S$ denominated facilities
• the S$151.0 million money market line facilities
• the S$88.0 million three-year trust term loan facility
• the S$50.0 million three-year trust term loan facility
• the S$50.0 million four-year trust term loan facility
• the S$50.5 million four-year trust term loan facility
• the S$75.0 million four-year trust term loan facility
• the S$50.0 million five-year trust term loan facility
• the S$75.0 million five-year trust term loan facility
• the S$100.0 million five-year trust term loan facility
US$ denominated facility
• the US$50.0 million money market line facility
Multicurrency Medium Term Notes
• the S$500.0 million multicurrency Medium Term Notes (MTN) Programme
CRCT has sufficient untapped facilities, which include S$500.0 million from the MTN Programme, and
money market line facilities of S$121.5 million and US$50.0 million. Current aggregate leverage for
CRCT is at 28.7% (below the Monetary Authority of Singapore’s requirement of 35%) with a total
outstanding debt of S$672.9 million.
CRCT’s effective capital management includes hedging its currency and interest rate risk exposures.
Other than the natural hedge where loans are borrowed in RMB, CRCT also hedges its non-RMB
denominated loans. This provides a currency match against CRCT’s assets which are predominantly
denominated in RMB. However, CRCT does not hedge the equity largely denominated in RMB as
CRCT 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 purposes. As at 31 December 2014, CRCT has hedged its non-RMB
loans through non-deliverable forwards (NDF) with a notional amount of S$258.0 million which
represented 53.9% (including RMB denominated loans) of total outstanding debts.
The fair value derivatives for FY 2014, which was included as financial derivatives in total assets and
total liabilities, were S$1.5 million and S$8.6 million respectively. This net amount represented a
negative 0.5% of the net assets of CRCT as at 31 December 2014.
CRCT successfully refinanced the term loans that matured in November 2014, and kept the overall
average cost of debt at 3.32%.
Capital Management
56 | CapitaRetail China Trust Annual Report 2014
