NOTES TO THE FINANCIAL STATEMENTS
25 Financial instruments (Cont’d)
Interest rate risk (Cont’d)
(a)
Effective interest rates and repricing analysis (Cont’d)
Trust
Effective
interest rate
Floating
interest
Fixed interest
rate maturing
within
1 to 5 years
Fixed interest
rate maturing
more than
5 years
Total
% $’000
$’000
$’000 $’000
2014
Financial liabilities
Interest-bearing borrowings
– S$ variable rate
2.67 200,000
–
– 200,000
– S$ variable rate
2.00 100,000
–
– 100,000
Loan from subsidiary
– S$ fixed rate
4.75
–
50,000
– 50,000
– S$ fixed rate
4.10
–
–
30,000 30,000
– S$ fixed rate
3.50
–
100,000
– 100,000
300,000
150,000
30,000 480,000
Financial assets
Derivative financial instruments
0.73
–
287
– 287
2013
Financial liabilities
Interest-bearing borrowings
– S$ variable rate
2.60 200,000
–
– 200,000
– S$ variable rate
2.57
12,172
–
– 12,172
– S$ variable rate
1.92 100,000
–
– 100,000
Loan from subsidiary
– S$ fixed rate
4.75
–
50,000
– 50,000
Derivative financial instruments
0.20
–
1,161
– 1,161
312,172
51,161
– 363,333
Financial assets
Derivative financial instruments
0.61
–
227
– 227
(b)
Sensitivity analysis
In managing the interest rate risk, the Group aims to reduce the impact of short term fluctuations on
its earnings.
Fair value sensitivity analysis for fixed rate instruments
The Group does not account for any fixed rate financial assets and liabilities at fair value through profit or
loss. Therefore, a change in interest rates at the reporting date would not affect profit or loss.
A change of 100 basis points in interest rates, if accounted for, would have increased or decreased
Unitholders’ funds and total return by approximately $0.5 million (2013: $0.7 million) for the Group and
for the Trust respectively.
CAMBRIDGE INDUSTRIAL TRUST | A WINNING FORMULA
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