Annual Report 2025 167 Notes to the Financial Statements 31 December 2025 13. Derivative Financial Instruments Group Trust 2025 $’000 2024 $’000 2025 $’000 2024 $’000 Derivative assets Current 3,801 55,797 2,797 51,876 Non-current 22,089 96,904 22,089 86,248 25,890 152,701 24,886 138,124 Derivative liabilities Current (26,850) (1,186) (26,850) (1,186) Non-current (76,479) (36,462) (76,479) (36,462) (103,329) (37,648) (103,329) (37,648) Total derivative financial instruments (77,439) 115,053 (78,443) 100,476 D erivative financial instruments as a percentage of net assets -0.71% 1.12% -0.71% 0.96% The Group enters into interest rate swaps to manage its exposure to interest rate movements on its floating rate interest-bearing borrowings by swapping the interest expense on these borrowings from floating rates to fixed rates. In addition. the Group enteres into cross currency swaps ("CCS") to manage its exposure to foreign exchange rate movements on its borrowings denominated in foreign currencies. The Group applies hedge accounting in accordance with FRS 109 Financial Instruments for certain hedging relationships which qualify for hedge accounting. The effective portion of the fair value gains or losses on the interest rate swaps and CCS is recognised directly in other comprehensive income and accumulated in the hedging reserve, while the ineffective portion is recognised in profit or loss. The Group held interest rate swaps with a notional amounts of AUD282.0 million, SGD850.0 million, GBP280.0 million and USD1,156.6 million (approximately $3,070.0 million) (2024 : AUD 564.0 million, SGD925.0 million, GBP280.0 million and USD1,156.6 million (approximately $3,843.0 million) to provide fixed rate funding for terms of less than 1 year to 5.2 years (2024 : less than 1 year to 6.2 years). The Group and the Trust enter into cross currency swaps with banks to manage currency risk. As at 31 December 2025, the Group held CCS with notional amounts of HKD 5.1 billion (approximately $0.8 billion) (2024 : HKD5.9 billion (approximately $1.0 billion)) to provide Singapore dollar funding for terms of less than 1 year to 6.1 years (2024 : less than 1 year to 7.1 years). In addition, the Group held CCS with notional amounts of AUD586.1 million and USD97 million (approximately $623.2 million) (2024 : AUD301.8 million and USD270.0 million (approximately $624.1 million)) as a hedge for its investment in Australia and US for a term of less than 1 year to 4.6 years (2024 : less than 1 year to 2.0 years) respectively. The Group had also entered into forward exchange contracts to manage its foreign currency risk. The notional amount of the Group’s outstanding forward exchange contracts as at 31 December 2025 was AUD 0.2 million, GBP 3.0 million, EUR 2.1 million and USD11.6 million (approximately $23.5 million) (2024 : AUD1.3 million, GBP2.8 million and USD31.4 million (approximately $48.0 million)) respectively.
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