SUSTAINABLE FINANCING In October 2023, we established a Sustainability-Linked Financing Framework and obtained a Second-Party Opinion from Moody’s Investors Service, demonstrating our commitment to responsible investment and improving our portfolio's ESG performance. As at 31 December 2023, 31% of the total outstanding debt are sustainability-linked loans, an increase from 13% as at 31 December 2022. HEDGING STRATEGIES CLCT’s effective capital management includes hedging of its currency and interest rate risk exposures. To mitigate interest rate risk exposure, 82%2 of the total debt is on fixed interest rates. In addition, 61%3 of the undistributed distributable income was hedged into SGD, mitigating foreign currency exposure. CLCT holds derivative financial instruments to hedge its currency and interest rate risk exposures. The fair value derivatives for FY 2023 comprised financial derivative assets and financial derivative liabilities of S$20.2 million and S$5.3 million respectively. This net amount represented 0.7% of the net assets attributable to Unitholders of CLCT as at 31 December 2023. LOAN REFINANCING In FY 2023, we successfully refinanced S$250.0 million in term loans, extending their maturities to FY 2027 and 2029. Additionally, we proactively addressed loans due in 2024 by issuing RMB600 million in FTZ Bonds and securing a S$50.0 million term loan, thereby extending their maturities to FY 2026 and 2029, respectively. We also took the initiative to early refinance S$52.7 million in onshore RMB loans with a 15-year term loan that offered a more favorable interest rate. Through these strategic refinancing actions, CLCT achieved a well-staggered debt maturity profile, with an extended average term to maturity of 3.5 years. As of 31 December 2023, the overall average cost of debt stood at 3.57%. In FY 2023, we expanded our financing diversification and we are committed to continuously review our debt portfolio to minimise refinancing risks. We have secured committed credit facilities for 2024, and have no refinancing requirements until 2025. As at 31 December 2023, CLCT maintains the following debt facilities: S$ denominated facilities: • S$70.0 million MML facility • S$100.0 million MML & Financial Guarantee (FG) facility • S$50.0 million multicurrency MML facility • S$200.0 million four-year trust loan facilities • S$650.0 million five-year trust loan facilities • S$550.0 million six-year trust loan facilities • S$150.0 million seven-year trust loan facility United States dollar (“US$”) denominated facilities: • US$50.0 million multicurrency MML facility RMB denominated facilities: • RMB394.0 million secured loan facility • RMB600.0 million secured loan facility • RMB400.0 million secured loan facility • RMB271.0 million secured loan facility • RMB133.9 million secured loan facility • RMB78.1 million secured loan facility Multicurrency debt issuance programme: • S$1.0 billion multicurrency debt issuance programme Free Trade Zone (FTZ) RMB bonds: • RMB600.0 million FTZ bonds TOTAL DEBT Other Loans 69% Sustainability/ Green Status 31% INTEREST RATES Fixed Rate2 82% Floating Rate 18% 2 Excludes Money Market Lines (MML) and onshore RMB loans. 3 Based on undistributed distributable income as at 31 December 2023. ANNUAL REPORT 2023 47 Financials Framework Portfolio Performance Leadership Overview
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