Page 37 - ar2012

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CAPITAL
MANAGEMENT
Funding and Borrowings
In October 2012, approximately S$100 million of equity
and S$65 million of debt were raised via a private
placement and issuance of Medium Term Notes (“MTN”)
respectively. The proceeds were utilised to prepay (i)
S$25 million loan and (ii) S$65 million loan, and repay
(iii) S$60 million MTN on maturity in November 2012. In
March 2013, a S$41 million loan was taken to fund the
investment in aVance 3.
As at 31 March 2013, the Group had total borrowings of
S$205 million with a gearing ratio of 22%1.
Debt Maturity Profile
Cash Management
The Group monitors and maintains a level of cash and
cash equivalents deemed adequate to meet the Group’s
operations as well as to meet any short term liabilities.
The cash generated from operations at VCUs are placed
in bank fixed deposits to maximise interest income prior
to the intended repatriation event.
Key Ratios (as at 31 March 2013)
(S$ million) FY13/14 FY14/15 FY15/16 FY16/17 FY17/18 FY18/19
MTN - - - 25 - 65
SGD Loan - 50 65 - - -
Total 0 50 65 25 0 65
22% Gearing Ratio 5.9% Average Cost of Debt
5.5
times
Interest Cover 3.21
times
Debt Cover
(Unitholder’s Fund / Debt)
CASH FLOWS AND LIQUIDITY
Operating Activities
Net cash generated from operating activities for FY12/13
increased to S$68 million as compared to S$59 million in
the preceding financial year.
Investing Activities
During the year, the Group invested S$40 million towards
the acquisition of aVance 3 via the subscription of Fully
Compulsorily Convertible Debentures (“FCCDs”) issued
by the vendor. The subscription of FCCDs is the start of a
multi-stage acquisition process which will be completed
upon the building’s completion and satisfaction of all
conditions precedent.
In the preceding financial year, the additions to investment
property were in relation to the completion of a multi-
tenanted IT building, ‘Voyager’ in ITPB, and the acquisition
of two buildings in aVance Business Hub, Hyderabad.
Bulk of the cash outflow under investing activities
represents development and acquisition cost of the
above properties.
Financing Activities
During the year, the group raised S$306 million of debt
and equity, and repaid borrowings of S$150 million.
The Group constantly monitors the cash position and
had deployed surplus cash in interest yielding bank
fixed deposits.
Cash and Cash Equivalents
As at 31 March 2013, the value of cash and cash
equivalents of the Group stood at S$70 million, compared
to S$65 million as at 31 March 2012.
1Gearing is calculated using total borrowings divided by sum of proportionate share of cash, investment in debt instrument, investment properties under construction and investment properties.