ESR AR 2019 EN

Capital Management 50 Focused ESR adopts a proactive and disciplined capital management approach to maintain a strong and well capitalised balance sheet, and regularly review its debt maturity profile and liquidity position on an ongoing basis. The Group maintains a strong balance sheet, and actively diversifies its funding sources through a combination of facilities with both local and international banks, and capital market issuances in optimising its costs of debt financing. The Group’s total borrowings as at 31 December 2019 were US$2.57 billion. With cash balance of US$884.2 million, the net debt to total assets as at 31 December 2019 was 26.6% which was within acceptable and healthy range. The Group manages its interest rates exposure by maintaining a combination of fixed and floating rate borrowings. As at 31 December 2019, the fixed rate borrowing made up of 33% of the portfolio and balance of 67% on floating rate basis. In managing the interest rate profile, the Group considers interest rate outlook and holding periods of its investment profile. The Group’s weighted average interest rate was 5.0% at end December 2019. During the year ended 2019, the Group issued S$350 million three-year fixed rate notes bearing interest at 6.75% per annum and US$425 million three-year fixed rate notes bearing interest at 7.875% per annum under its US$2 billion Multicurrency Debt Issuance Programme. Subsequent to December 2019, the Group entered into an US$250 million three-year syndicated unsecured term loan with leading international banks at a rate of Libor plus 3.00%, which has been drawn down in full in March 2020. On 26 February 2020, the Group issued a S$225 million of five-year fixed rate notes bearing 5.10% per annum. With these financing, the Group has demonstrated its clear ability to materially reduce its cost of borrowing post listing by over 150bps, and to lengthen its debt maturity profile. As at 31 December 2019, the Group’s weighted average debt maturity remains at 3 years. The Group monitors its debt maturity profile on an ongoing basis and proactively built up sufficient cash reserves and refinancing existing borrowings to meet its short-term obligations, ongoing development expenditures and opportunistic investments. Within 1 year In the 2nd year In the 3rd and 5th year, inclusive Beyond 5 years 232.2 9% 691.8 27% 1,497.9 58% 149.0 6% Debt Maturity Profile (US$ million) As at 31 December 2019