c a p i t a l m a n a g e m e n t
We lower the Trust’s borrowing cost by
having a mix of Indian Rupee and Singapore
dollar borrowings. As at 31 March 2015,
67% of the Trust’s effective borrowings
were denominated in Indian Rupee with
the remaining 33% in Singapore dollar. The
weighted average interest cost of Singapore
dollar and Indian Rupee borrowings were
3.6% and 8.2% respectively as at 31 March
2015. a-iTrust’s overall weighted average cost
of debt was 6.7% as at 31 March 2015.
!
Interest Rate Risk
The Trust’s exposure to changes in interest rates
relates primarily to interest-earning financial
assets and interest-bearing financial liabilities.
The Trust has entered into interest rate swaps
to hedge its entire floating-rate borrowings into
fixed-rate obligations.
As at 31 March 2015, 100% of the Trust’s
borrowings carry fixed-rate interest.
!
Refinancing Risk
We aim to achieve an optimal balance between
reducing interest costs by taking shorter tenure
borrowings, and spreading out the expiry profile
of the Trust’s borrowings to reduce refinancing
risk. The weighted average debt expiry is 2.6
years as at 31 March 2015 and the expiry of the
Trust’s borrowings is spread out over the next
five years. There is minimal refinancing risk over
the next 12 months as we have secured credit
facilities to refinance all the borrowings expiring
in FY15/16.
Debt Headroom
As at 31 March 2015, the Trust may increase
its borrowings by S$318 million before reaching
the 40% gearing limit. This provides the Trust
with significant resources to fund potential
acquisitions and developments using additional
borrowings. Should a-iTrust obtain a credit rating,
the Trust may increase its borrowings by an
additional S$787 million to S$1,105 million.
Debt Headroom (S$ million)
2,000
1,600
1,200
800
400
0
60% Cap
40% Cap
S$1,105 Million
Debt Headroom
S$318 Million
Debt Headroom
Current Gearing
25%
Deposited Property
Effective Borrowings
Available Debt Headroom
2
Cash management
The Trust monitors and maintains a level of cash
and cash equivalents deemed adequate to meet
the Trust’s operations as well as to meet any
short term liabilities. The cash generated from
operations at Indian entities are placed in bank
fixed deposits to maximise interest income prior
to the intended repatriation event.
!
Liquidity Risk
The Trust maintains sufficient cash and cash
equivalents to meet the normal operating cash
requirement. The Trust regularly monitors and
observes bank covenant for borrowings.
Debt Expiry Profile (S$ million)
FY
SGD Denominated Debt
INR Denominated Debt
100
80
60
40
20
0
42.9
42.9
16/17
40.2
40.2
17/18
65.8
44.8
21.0
18/19
42.5
76.0
33.5
19/20
88.3
39.3
49.0
15/16
ASCENDAS india trust ANNUAL REPORT 2014/15
