NOTES TO THE FINANCIAL STATEMENTS Year ended 31 December 2023 29. CAPITAL AND FINANCIAL RISK MANAGEMENT (continued) Foreign currency risk (continued) Cross Currency Interest Rate Swap At 31 December 2023, the Group has cross currency interest rate swap contract with notional amount of $50.0 million to hedge the foreign currency exposure from the net investment in certain subsidiaries in China. The fair value of the foreign exchange component of the CCIRS as at 31 December 2023 of $0.8 million has been recognised directly in the Unitholders’ funds. A 10% strengthening/weakening of Singapore dollar against the RMB at the reporting date would increase and decrease the Unitholders’ funds by $4.6 million and $5.6 million respectively. Hedge accounting Cash flow hedges The Group held the following instruments to hedge exposures to changes in foreign currency and interest rates. Maturity 1 – 6 months 6 – 12 months More than one year 2023 Interest rate risk Interest rate swaps Notional amount (in thousands of SGD) 95,000 214,000 786,000 Average fixed interest rate 0.6% 1.3% 2.0% Cross currency interest rate swap Notional amount (in thousands of SGD) – – 50,000 Average fixed interest rate – – 3.2% 2022 Interest rate risk Interest rate swaps Notional amount (in thousands of SGD) 120,000 20,000 879,000 Average fixed interest rate 1.1% 2.8% 1.5% The amounts relating to items designated as hedging instruments and hedge ineffectiveness were as follows. 2023 During the period – 2023 Notional amount Carrying amount – assets Carrying amount – liabilities Changes in the value of the hedging instrument recognised in Unitholders’ funds Amount reclassified from hedging reserve to the statement of total return Amount reclassified from costs of hedging reserve to the statement of total return Line item in the statement of total return affected by the reclassification Group and Trust $’000 $’000 $’000 $’000 $’000 $’000 Interest rate risk Interest rate swaps 1,095,000 19,657 (3,987) (49,197) 21,776 – Finance costs Cross currency interest rate swap 50,000 – (1,362) (191) 786 – Finance costs ANNUAL REPORT 2023 217 Financials Framework Portfolio Performance Leadership Overview
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