ESR-REIT Annual Report 2024 59 DIVERSIFIED SOURCES OF FUNDING In FY2024, ESR-REIT entered into the following bank financings and capital markets transactions: 1. Entry into S$200.0 million Sustainability-linked Unsecured Revolving Credit Facility 2. Entry into S$225.0 million Unsecured Sustainability-linked Loan Facility 3. Entry into JPY15.5 billion Offshore Unsecured Term Loan Facility 4. Entry into JPY22.8 billion Onshore Secured Term Loan Facility 5. Entry into S$341.5 million Secured Term Loan5 with a Green Loan Component 6. Launched S$94.0 million preferential offering 7. Issued S$174.75 million 6.00% subordinated perpetual securities, comprising S$74.75 million of new securities issued as part of the exchange consideration for the Series 006 perpetual securities and S$100.0 million of additional new securities CASH FLOWS AND HEDGING ESR-REIT takes a proactive role in monitoring its cash flow position and requirements to ensure sufficient liquidity and adequate funding is available for distribution to its Unitholders, as well as to meet any short-term obligations. The Manager endeavours to maximise natural currency hedging by using borrowings in local currency when financing its overseas investments, where possible. Currently, the REIT’s AUD and JPY denominated borrowings provide a natural hedge for its Australian and Japanese investments respectively. To further mitigate foreign currency exchange risk, the REIT enters into foreign currency exchange forward contracts on a 12-month rolling basis for foreign currency income that is repatriated back to Singapore. 5 The S$341.5 million term loan was obtained by Tuas South Avenue Pte. Ltd., of which ESR-REIT has a 51% ownership interest.
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