ESR AR 2019 EN

Notes to the Consolidated Financial Statements 31 December 2019 236 Focused 48. EVENTS AFTER THE REPORTING DATES On 13 January 2020, the Group entered into a strategic partnership with Singapore’s sovereign wealth fund GIC Pte. Ltd. (“GIC”) to establish a joint venture with a total equity commitment of USD500 million which will focus on the development of institutional grade, state of-the-art logistics facilities in key cities across China. On 17 February 2020, the Group announced an estimated JPY27 billion investment (equivalent to approximately USD245 million) to develop ESR Yatomi Kisosaki Distribution Centre (“ESR Yatomi Kisosaki DC”) in Greater Nagoya, Japan. In February 2020, the Company entered into a new facility agreement for a USD250 million three-year syndicated unsecured term loan with leading international banks at a rate of Libor plus 3.00%. On 26 February 2020, the Company issued a SGD225 million (approximately USD166 million) of five-year fixed rate notes bearing 5.10% per annum which due in February 2025, pursuant to its USD2.0 billion Multicurrency Debt Issuance Programme. On 20 March 2020, the Board announced that it intends to exercise the general mandate to repurchase shares of the Company (the “Shares”) (the “Repurchase Mandate”) granted by the Shareholders pursuant to resolutions of the Shareholders passed on 12 October 2019, to repurchase Shares in the open market from time to time (the “Share Repurchase”). The Share Repurchase will only be conducted after issuance of the Company’s annual results. Pursuant to the Repurchase Mandate, the Board may repurchase up to 10% of the total number of Shares in issue immediately following completion of the Global Offering (as defined in the prospectus of the Company dated 22 October 2019). 49. UPDATE ON COVID-19 After the reporting period, there is an outbreak of COVID-19 in early 2020. The current COVID-19 situation is a fluid one and the Group is monitoring it closely. The well-being and safety of the Group’s stakeholders including ESR employees, tenants and capital partners are of utmost importance to the Group. As such, appropriate measures have been undertaken across the Group. At present, there has been minimal disruption caused by COVID-19 to the Group’s development and operating projects. In addition, the Group remains well-capitalised as at 31 December 2019, as well as new financings (as disclosed in Note 48) post financial year-end. As at the date on which this set of financial statements were authorised for issue, the Group was not aware of any material adverse effects on the financial statements as a result of the COVID-19 outbreak. Nonetheless, given the uncertainty around the continued spread and outbreak of the virus, it is difficult to predict how long these conditions will continue and the full extent to which ESR may be affected in the future. The Group will continue to be vigilant, maintain flexibility in the operations, proactively manages and reacts to its impacts on the financial position and operating results of the Group, as appropriate.