ESR AR 2019 EN

51 ESR Annual Report 2019 CAPITAL MANAGEMENT Charge of Assets As at 31 December 2019, certain of the Group’s assets were pledged to secure bank and other borrowings granted to the Group. The details of charged assets are disclosed in Note 26 to the Consolidated Financial Statements. Except for the aforementioned charges, all the Group’s assets are free from any encumbrances. Contingent Liabilities As at 31 December 2019, neither the Group nor the Company had any significant contingent liabilities. The Group has exposures to foreign exchange rates fluctuations from subsidiaries and joint ventures from China, Japan, South Korea, Australia, Singapore and India. The Group manages its foreign currency exposure via natural hedges at both projects and corporate levels. Operating and development activities of each countries are funded through project level debts and operating income that are in their respective local currencies. At corporate level, the Group currently fund some of its investments through corporate borrowings in the currency of the country in which the investment is located. The Group has not used foreign currency derivatives to hedge its underlying net investments, but will explore doing so in the future if needed. As at 31 December 2019, currency profile of the Group’s cash and bank balances; and bank and other borrowings are as below: Bank and Other Borrowings As at 31 December 2019 United States dollars 39% Japanese Yen 23% Renminbi 13% Australian dollars 11% Singapore dollars 14% Cash and Bank Balances* As at 31 December 2019 United States dollars 36% Japanese Yen 19% Renminbi 16% Australian dollars 12% Singapore dollars 11% Hong Kong dollars 5% South Korean Won 1% *Indian Rupee less than 1% The Group continues to closely monitor the interest and exchange rates movements and evaluate such impact to its portfolio. The Group will consider using financial derivatives as additional tools when appropriate to manage foreign currency and interest rate exposures.