19 ESR Group Limited Interim Report 2024 Debt Maturity Profile (US$ million) As at 30 June 2024 2027 and beyond 1,029 564 1,195 3,403 2H2024 2025 2026 As at 30 June 2024, the Group’s gearing was 32.3%, with weighted average debt maturity of 4 years (31 December 2023: 5 years). The weighted average interest cost was 4.9% as at 30 June 2024 (31 December 2023: 5.3%) as management has tapped lower margin financing to refinance more expensive US dollar denominated debt. As at 30 June 2024, 10% of the Group’s borrowings was on fixed rate while the remaining 90% was on floating rate basis. While gearing was 32.3% as at 30 June 2024, it would be approximately 30% upon the impending completion of the sale of ARA Private Funds and the formal launch of the ESR C-REIT. With the ongoing transactions of approximately US$1 billion in gross value which are pending completion, and another US$2 billion in the pipeline to be executed, the Group remains committed to reducing its gearing towards the low end of the range of 20–30%. The Group has exposures to foreign exchange rate fluctuations primarily from its investments and income from its subsidiaries, associates and joint ventures, including Greater China, Japan, South Korea, Australia, Singapore and India. The Group manages and minimises its foreign currency exposures by natural hedges using various currencies at the project and corporate levels. The operating and development activities of each country are funded mainly through project level debts and operating income that are in their respective local currencies. At corporate level, the Group currently funds some of its investments through corporate borrowings in the currency of the country in which the investment is located. The Group monitors closely the interest and exchange rates movements and assesses the use of financial derivatives as additional tools when appropriate to manage foreign currency and interest rate exposures. As at 30 June 2024, currency profile of the Group’s cash and bank balances; and bank and other borrowings are as below: Cash and Bank Balances As at 30 June 2024 42% RMB 25% USD 11% JPY 6% SGD 6% AUD 4% HKD 4% KRW 2% Others US$1.1 billion Bank and Other Borrowings As at 30 June 2024 25% SGD 20% JPY 18% HKD 17% USD 4% AUD 15% RMB 1% Others US$6.2 billion CHARGE OF ASSETS As at 30 June 2024, certain of the Group’s assets were pledged to secure bank and other borrowings granted to the Group. The information of the carrying value of assets charged are in Note 18 of the unaudited condensed consolidated financial information. Except for the aforementioned charges, all the Group’s assets are free from any encumbrances. CONTINGENT LIABILITIES As at 30 June 2024, neither the Group nor the Company had any significant contingent liabilities.
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