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Capital management
1Calculation of debt headroom assumes further gearing capacity on new assets acquired.
Debt expiry profle
(S$ 'm)
14/15 15/16 16/17 17/18 18/19 FY
45.0
45.0
50.0
22.5
27.5
75.0
41.0
34.0
65.0
44.0
21.0
SGD Denominated debt INR Denominated debt
Debt headroom
(S$ 'm)
Interest rate risk
a-iTrust’s exposure to changes in interest rates relates
primarily to interest-bearing fnancial liabilities. We have
entered into interest rate swaps to hedge the Trust's
entire foating-rate borrowings into fxed-rate obligations.
As at 31 March 2014, 100% of a-iTrust’s borrowings carry
fxed-rate interest.
Refnancing risk
We aim to achieve an optimal balance between reducing
interest costs by taking shorter tenure borrowings, and
spreading out the expiry profle of our borrowings to
reduce refnancing risk. The weighted average debt
expiry is 2.4 years as at 31 March 2014 and the expiry of
the Trust's borrowings is spread out over the next
fve years.
Debt headroom
As at 31 March 2014, a-iTrust may increase its borrowings
by S$318 million1 before reaching the 40% gearing
limit. This provides us with signifcant resources to fund
potential acquisitions and developments using additional
borrowings. Should a-iTrust obtain a credit rating, the
Trust would have debt headroom of S$1,008 million.
60%Cap 1,008
40%Cap 318
235 Current
gearing 22%
Trust property Net debt Avaliable debt
headroom
1,063