capital management
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 2016, 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 2.8 years as at 31 March 2016.
S$ denominated debt
denominated debt
Deferred consideration
7
42.3
46.0
84.5
86.1
93.7
FY16/17
Fy17/18
FY18/19
FY19/20
FY20/21
S$ Million
3.0
39.3
36.0
57.5
5.0
47.6
33.5
30.0
63.7
27.0
10.0
7
Deferred consideration relates to the remaining purchase consideration on the acquisition of the third building in CyberVale
IT Special Economic Zone in Chennai which was announced in March 2016. The consideration will be paid in tranches as and
when the remaining space in the building is leased.
.32
ASCENDAS india trust ANNUAL REPORT
2015/2016
Ove r v i ew
what af f ect s us
what we do
our p e r formance
