Notes to the Financial Statements For the financial year ended 31 December 2025 14. INTEREST-BEARING BORROWINGS (CONT’D) Loan covenants The Group's non-current borrowings amounting to $1.6 billion is subject to compliance with certain financial covenants that are assessed on a quarterly or half-yearly basis. The Group is in compliance with these covenants during the reporting period and expects to comply with these covenants for at least 12 months after the reporting date. A reconciliation of liabilities arising from the Group’s financing activities is as follows: 2024 Acquisition of subsidiaries Cash flows* Amortisation of loan transaction costs Effect of changes in foreign exchange rates 2025 $’000 $’000 $’000 $’000 $’000 $’000 Bank loans 2,129,240 – (118,831) 6,182 (16,649) 1,999,942 Fixed rate notes 124,760 – 99,652 208 – 224,620 2,254,000 – (19,179) 6,390 (16,649) 2,224,562 2023 Acquisition of subsidiaries Cash flows* Amortisation of loan transaction costs Effect of changes in foreign exchange rates 2024 $’000 $’000 $’000 $’000 $’000 $’000 Bank loans 1,431,278 411,600 315,975 4,914 (34,527) 2,129,240 Fixed rate notes 124,609 – – 151 – 124,760 1,555,887 411,600 315,975 5,065 (34,527) 2,254,000 * The cash flows included an upfront loan transaction cost of $2.3 million (2024: $10.7 million) relating to new loan facilities. 15. AMOUNT DUE TO NON-CONTROLLING INTERESTS This relates to the 20% non-controlling interest in 7000 AMK LLP of $73.1 million (2024: $72.4 million) and the loans from the shareholder of the remaining 49.0% interest in Tuas South Avenue LLP of $193.1 million (2024: $219.2 million) that is not owned by the Group. The 20% non-controlling interest in 7000 AMK LLP has been accounted for and classified as a current liability due to the Put Option granted by ESR-REIT to HLP. As disclosed in Note 5, the Put Option provides HLP with the right to require ESR-REIT to purchase its 20% interest in 7000 AMK LLP. 190 ESR-REIT ANNUAL REPORT 2025
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